Q1. Economic models are used to

A. explain decision making by individuals, firms and other organizations.

B. build physical renditions of government construction peojects.

C. represent the complexities of economic environments.

D. explain every detail of an economic theory.

Q2. The quantity demanded of a product increases as

A. the price of other products.

B. the price of the product rises.

C. the price of the product falls.

D. consumer income rises.

Q3. __________ are costs that require a monetary payment.

A. Implicit costs

B. Explicit costs

C. Accounting costs

D. Both B and C are correct.