Which of the following is assumed in virtually every economic model?
A) Inefficiency exists in the economy.
B) Decision makers operate in the face of unlimited resources.
C) All decision makers face constraints.
D) Normative economic statements are derived from mathematical equations.
E) Positive statements are derived from normative statements.

Question

Quizplus · Accepted Answer

All economic models assume that decision makers face constraints, such as limited resources, time, and information. This is a fundamental assumption that allows economists to make predictions about how people will behave in different situations.

Which of the Following Is Assumed in Virtually Every Economic