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pashok25 [27]
3 years ago
7

Economic models often: vary greatly in assumptions and simplifications. are correct. provide similar answers. fail to explain an

y of the real-life scenarios they are supposed to help solve.
Business
1 answer:
polet [3.4K]3 years ago
7 0

Answer:

Economic models often vary greatly in assumptions and simplifications.

Explanation:

Most models in Classical Economics are based on a lot of generalizations and simplifications, that intend to model the behavior of the situations of the real world but often fail to encompass all the intricacies and complications that even most straightforward situations present. These simplifications help the Economists figure out the mathematical laws that are governing the real world economic systems. Therefore making the economic modeling a simpler process.

Classic economics implies three basic assumptions:

1- People behave rationally in any situation.

2- Firms and individual want to maximize profit and utility

3- People act independently based on available information.

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The multiplier in this case is 3,

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3 years ago
When an investor appropriately applies the equity method, how should it account for any investee other comprehensive income (oci
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The following data pertain to an investment proposal: Required investment $75,000 Annual cash savings $18,000 Projected life of
ehidna [41]

Answer:

Explanation:

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Yr1 cashflow ; C01 = 18,000

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Yr3 cashflow ; C03 = 18,000

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