Just Like Models Constructed in Other Areas of Science,economic Models

question 12

Multiple Choice

Just like models constructed in other areas of science,economic models

• A)incorporate assumptions that contradict reality.
• B)incorporate all details of the real world.
• C)complicate reality.
• D)avoid the use of diagrams and equations.

Recognize the key indicators of economic performance (e.g., GDP per person, inflation rate).

Distinguish between real and nominal values in economic indicators.

Identify the effects of changes in GDP on a nation's economic health.

Understand the relationship between GDP per capita and quality of life measures.