Which of the Following Statements Is Correct

question 110

Multiple Choice

Which of the following statements is correct?

• A)Few economic models incorporate assumptions.
• B)Different economic models employ different sets of assumptions.
• C)Good economic models attempt to mimic reality as closely as possible.
• D)Economic models,to be accepted,must be tested by conducting experiments.

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Definitions:

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated by adjusting the starting inventory for purchases and sales during the period.

Cost-to-retail Ratio

A method used in retail to calculate the cost of merchandise sold, calculated by dividing the cost of goods by the retail price.