Which Is Not a Characteristic of a Good Economic Model

question 61

Multiple Choice

Which is not a characteristic of a good economic model?

• A) Focuses on important details
• B) Predicts cause and effect
• C) Utilizes vague assumptions
• D) Describes the world accurately

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Definitions:

Credit

An accounting entry that decreases assets or increases liabilities and equity on the company's balance sheet, or in the context of banking, the provision of funds or resources to a recipient.

Prepaid Expenses

Costs paid in advance for goods or services that will be used or consumed over time, recorded as assets on the balance sheet.

Accrued Expenses

Expenses that have been incurred but not yet paid or recorded at the end of a reporting period.

Unearned Revenue

Money received by an individual or company for a service or product that has yet to be provided or delivered.