A Constraint to Complicated Macroeconomic Models Has Been

question 7

Multiple Choice

A constraint to complicated macroeconomic models has been:

• A) that firms do not maximize profits.
• B) that agents are not rational.
• C) that economists have run out of ideas.
• D) a lack of computing power.
• E) an insufficient understanding of statistics.

Understand the significance of motivations in goal-oriented behavior.

Understand the difference between intrinsic and extrinsic motivation.

Recognize the conceptual basis of drive-reduction theory.

Distinguish between biological drives and learned motives.

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Definitions:

Adjustments

Entries made in accounting records at the end of an accounting period to allocate revenues and expenses to the period in which they actually occurred.

Account Balances

The amounts in financial accounts at a specific point in time, reflecting the difference between debits and credits.

Supplies Account

An account used in accounting to track the amount spent on supplies used within an organization.

Adjustment

Entries made in accounts to correct errors or allocate income and expenses to the correct accounting period.