Which of the Following Correctly Describes a Deterministic Economic Model

question 17

Multiple Choice

Which of the following correctly describes a deterministic economic model?

• A) A deterministic model is a model for which the outcome is predicted with certainty.
• B) A deterministic model can only be used to explain short-run economic phenomena.
• C) A deterministic model is most useful in identifying long-term trends.
• D) A deterministic model is used in the study of normative economics.
• E) The outcome of a deterministic model is random and has probabilities attached.

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Definitions:

Total Liabilities

The combined amount of obligations a company owes to external parties, including loans, accounts payable, mortgages, and other debts due within one year or beyond.

Owner's Equity

The residual interest in the assets of the entity after subtracting liabilities, representing the owner's claim on the business assets.

Total Assets

The sum of all assets owned by a company, including cash, investments, property, and equipment.

Period Of Time

A specific duration or length of time during which an event occurs or a condition exists.