Which of the Following Statements Is TRUE

question 103

Multiple Choice

Which of the following statements is TRUE?

• A)The usefulness of economic models depends on how well the models predict.
• B)An economic model should capture more than the relationships that are sufficient to analyse the problem being studied.
• C)Economists never empirically test their models.
• D)Economic models focus on individual thought processes rather than on behaviour.

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Definitions:

Wage Increase

An upward adjustment in salary or wages, often given to employees based on performance, inflation, or market standards.

Subjective Well-being

An individual's personal assessment of their overall happiness and life satisfaction.

Relative Deprivation

The experience of feeling deprived of something to which one believes to have a right, particularly in comparison to others possessing it.

Adaptation-level Phenomenon

The tendency to judge new stimuli and experiences by comparing them to our past experiences, leading to a normalization of experiences.