Which of the Following Is Part of an Economic Model

question 127

Multiple Choice

Which of the following is part of an economic model?

• A)assumptions
• B)norms
• C)opinions
• D)preferences of economic agents

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Definitions:

Complementary Resource

A good or service that is used together with another good or service to provide a benefit or function.

Substitution Effect

The economic understanding that as prices rise or incomes decrease, consumers replace more expensive items with less costly alternatives.

Output Effect

The change in total output resulting from a specific economic policy or condition, such as an increase in demand.

MRP

Marginal Revenue Product, the additional revenue generated by the employment of one additional unit of a factor of production.