Which of the Following Statements About Economic Models Is True

question 1

Multiple Choice

Which of the following statements about economic models is true?

• A)There is only one correct economic model.
• B)All economic models are based on the same assumptions.
• C)The purpose of economic models is to show how endogenous variables affect exogenous variables.
• D)Economists use different models to address different questions.

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Definitions:

Temptation

A desire to engage in short-term urges for enjoyment that threatens long-term goals, relevant in marketing when consumers are enticed by products.

Myth

A traditional story, often involving supernatural beings or phenomena, that serves to explain a natural or social phenomenon.

Uncertainty Avoidance

A cultural dimension that describes the degree to which people in a society feel uncomfortable with ambiguity, uncertainty, and risk, influencing behaviors and practices.

Myth

A traditional story or belief that embodies the values and ideals of a society or group, often used in branding to convey complex ideas simply.