The Importance of an Economic Model Is That It Allows

question 102

Multiple Choice

The importance of an economic model is that it allows us to:

• A)build a complex and accurate model of the economy.
• B)build an accurate mathematical model of the economy.
• C)focus on the effects of only one change at a time.
• D)avoid opportunity costs.

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Definitions:

Book of Original Entry

The first place where financial transactions are recorded, including journals.

Journal Entry

A record in accounting that documents a business transaction, showing the accounts impacted and the amounts debited and credited.

Debit Account

A bookkeeping record that raises the value of an asset or expense, or lowers the value of a liability or equity.

Credit Account

A Credit Account is a type of financial account that records the amounts that are owed by a business to its suppliers or creditors, which are typically settled at a later date.