The following sections are included:The Nature of Economic AnalysisThe Rationality AssumptionWhat Is an Economic Explanation?The Scope of Economic AnalysisProblem Set#The Nature of Economic Analysis#The Rationality Assumption#What Is an Economic Explanation?#The Scope of Economic Analysis#Problem Set...
the value of money decreases. Still, inflation isn’t necessarily a bad thing. In fact, a low inflation rate is thought to encourage economic activity. But high inflation that isn’t accompanied with high demand can both cause problems for an economy and eventually lead to a recession. ...
An economic crisis is a state in which dramatic shifts in the economy create severe hardship for everyone connected with the...
and the price of the goods and services sold, which prompts an economic decline. An economy’s relationship between supply and demand is reflected in its inflation rates and interest rates. Inflation happens when goods and services get more expensive. Put another way, the value of money decrease...
can occasionally reach an unsustainable level. For example, corporations and consumers may borrow more money with the assumption that economic growth will help them handle the added burden. But if the economy doesn’t grow as quickly as expected, they may end up with more debt than they can ...
Many mainstream economic assumptions and theories are based on rational choice theory. Rational choice theory is associated with the concepts of rational actors, self-interest, and the invisible hand. Rational choice theory is based on the assumption of involvement from rational actors. Rational actors...
sole proprietorships which are not required by law to do so. Economic entity assumption violation is the failure of corporations to keep economic entities separate. At the least, this failure can create headaches for your accountant. In the worst-case scenario, it can be a violation of tax ...
Conventional economic theory assumes that effort is maximized given the firm's production function and is therefore not a variable. Introducing the behavioral assumption of effort variability into the objective function of the individual and the firm has real implication on understanding the microeconomics...
Although most apply specifically to public companies, the entity assumption applies to privately held small businesses. Entity Assumption Explained An entity assumption, more commonly referred to as an economic entity assumption, is the first of 10 general accounting principles. The assumption states ...
第三步,对比材料和选项。D选项的contributes to对应材料第二句的a tool for和尾句的is good for,the economy of destination countries and regions与第二句的an economic motor for destination countries and cities同义替换,故本题答案为D。反馈 收藏