A critical assumption made by all economic models is that

Question

Quizplus · Accepted Answer

The best choice is statement E, which states that every economic decision maker faces constraints under every economic system. This is because economic models are based on the assumption that resources are limited and scarce, and therefore all economic decision makers must make choices and allocate resources based on these constraints. This holds true regardless of the economic system in place, as even in a planned economy or a market economy, resources will always be limited and choices need to be made based on those constraints.

A Critical Assumption Made by All Economic Models Is That