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When do assumption made in conjunction with economic theorizing have to be realistic?
They must be realistic when the assumptions are considered key to the model's outcomes. For example, when you make a model analysing how households decide to spend their money in real economic situations, you should not assume households have infinite wealth to make their purchases as this does not provide any useful information about what we are looking for. When you make an assumption in a model, it must help the model to represent the question for explanation, not to create unrealistic circumstances which are inapplicable to the question.
What else can I help you with?
What is economic entity assumption?
Economic entity assumption is an assumption under the Generally Accepted Accounting Principles that separates the stakeholders from the business itself. The business is its own entity. Economic entity assumption is an assumption under the Generally Accepted Accounting Principles that separates the stakeholders from the business itself. The business is its own entity.
What are the basic assumptions in accounting?
Economic Entity Assumption Going Concern Assumption Monetary Unit Periodicity(Time Period) Assumption
Who challenged the assumption that ethical behavior comes at the expense of economic efficiency?
who challenged the assumption that ethical behavior comes at the expense of economic efficiency
What is the importance of ceteris paribus assumption in economic?
Balls Deep
What is theorizing urbanism?
Theorizing urbanism involves analyzing and interpreting the various social, political, economic, and cultural factors that shape cities and urban spaces. This includes studying urban development, planning, design, and the ways in which people interact with urban environments. Theorizing urbanism helps us understand how cities function and evolve, and can inform policies and strategies for creating more sustainable and inclusive urban areas.
Time period assumption states?
The time period assumption divides the economic life of a business into specific intervals that are used in reporting. see also: going concern assumption
What is the behavioral assumption of the modern financial-economic theory?
The behavioral assumption of the modern financial-economic theory runs counter to the ideas of trustworthiness, loyalty, fidelity, stewardship, and concern for others that underlie the traditional principal-agent relationship.
What were 3 main elements of Alexander hamiltons economic program?
assumption of deptsestablish federal bankingtarrifs
How did Ghana achieve economic success?
Ghana has achieved economic success by making use of its natural resources, as well as participating in a 3 year plan in conjunction with the IMF.
What are the most important accounting principles?
There are many accounting principles and many are very important in their own way. The top three most important principles are: Economic Accounting Principle, Monetary Unit Assumption, and Time Period Assumption.
Real GDP?
a measurement of economic output minus the effects of inflation or deflation, gives a more realistic assessment of growth
Which approach to criminology is based on the assumption that human behavior is a product of biological economic psychological and social factors?
The integrated or multidisciplinary approach to criminology is based on the assumption that human behavior is a product of multiple factors, including biological, economic, psychological, and social influences. This approach recognizes that crime is complex and can be better understood by considering a combination of these different factors.
