When Constructing an Economic Model, Economists

question 129

Multiple Choice

When constructing an economic model, economists

• A)rely mostly on their own value judgments and ignore the far more complex world of facts
• B)always try to duplicate reality by including all available information
• C)use assumptions that are true for the individual but never true for the whole economy
• D)must rely on simplifying assumptions that abstract from the complexity of the real world
• E)are primarily concerned with making realistic assumptions

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Definitions:

Manufacturer

A manufacturer is a company or individual that produces finished goods from raw materials through the use of tools, human labor, and machinery in a process called manufacturing.

Employee Referrals

A recruiting approach where current employees recommend potential candidates for open positions within the organization.

One-Year Survival Rate

A statistical measure indicating the percentage of individuals or entities that continue to exist or operate one year after initiation.

Diversity

The state of being diverse; it includes a range of different characteristics in a group of people, such as cultural background, ethnicity, gender, and beliefs.