One of the Advantages of Simulation Is That

question 45

Multiple Choice

One of the advantages of simulation is that:

• A) real-world complications can be included that most OM models cannot permit.
• B) it always generates a more accurate solution than a mathematical model does.
• C) it is a repetitive approach that may produce different solutions in repeated runs.
• D) model development is less time consuming than for mathematical models.
• E) model solutions are transferable to a wide variety of problems.

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Definitions:

Annually Balancing

The process of adjusting or reconciling financial accounts or budgets to match or balance over a one-year period.

Cyclically Balanced Budget

A fiscal strategy where the government aims to balance its budget over the complete economic cycle, accumulating surpluses in boom periods and deficits during recessions.

Budget Deficits

A financial situation where a government's expenditures surpass its revenues.

Budget Surpluses

A situation where a government's revenue exceeds its expenditures over a specific period, indicating financial health.