A Model Is Used to Explain Economic Behavior

question 50

Multiple Choice

A model is used to explain economic behavior. Therefore

• A)the assumptions must be complex while the model itself is simple.
• B)the model must be complex.
• C)the model must be simple.
• D)the model can be either simple or complex so long as it explains economic behavior.

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Definitions:

Market

An economic system where goods and services are freely exchanged between buyers and sellers under competitive conditions.

Efficiency

The state or quality of being able to achieve maximum productivity with minimum waste or expense.

Equality

The state or condition of being equal, especially concerning status, rights, and opportunities.

Ticket-Scalping

The act of buying tickets for an event and reselling them at a higher price.