Economists build models to identify relationships between variables and thus help them predict the effects of changes in some variables on others. Identify the economic model-building process by selecting the appropriate labels from the dropdown menus in the table below.
Step 1 Impose complications
Step 2 Model development
Step 3 Problem identification
Select variables
Testing a theory
In order to be useful, models require___assumptions.

See explanation

Explanation:

Based on the information that's given above, the economic model-building process will be:

Step 1: Problem identification

Step 2: Model development

Step 3: Testing a theory

An economic model simply means a simplified version of reality which enables Economist to be able to observe, and make forecast with regards to economic behavior.

Lastly, in order to be useful, models require (simplifying) assumptions.

urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total