A Model That Sometimes Makes Incorrect Predictions May Be Used

question 142

Multiple Choice

A model that sometimes makes incorrect predictions may be used by economic decision makers

• A)under no circumstances
• B)only if its assumptions are detailed and realistic
• C)if it is mathematical and computerized
• D)if it is simple enough for a child to understand
• E)until a better model is developed

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Definitions:

Firm Offer

An offer in a contract that is expressed in a way that it cannot be revoked for a certain period of time.

Merchant

An individual or business entity engaged in the trade of goods, services, or both, to consumers.

Bilateral Contract

A mutual agreement between two parties where each promises to perform an act in exchange for the other party's act.

Valid Contract

A legally binding agreement between parties that is enforceable by law, meeting all essential elements like offer, acceptance, consideration, and mutual intent.