Because Models Are Used to Explain Economic Behavior

question 2

Multiple Choice

Because models are used to explain economic behavior

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

---

Definitions:

Capitalist

An economic system where private individuals own and control property and businesses, operating them for profit.

Competitive Advantage

A condition or circumstance that puts a company in a favorable or superior business position compared to its competitors.

Sustainable Innovation

The creation of new products, processes, or technologies that meet current needs without compromising the ability of future generations to meet their own needs.

Use of Plastic

The utilization of synthetic or semi-synthetic organic compounds that are malleable and can be molded into solid objects for various uses.