An economic model is a purposeful simplification of reality, whose function includes:
A. Understanding the full complexity of the real world
B. Predicting the behavior of each and every individual or organization
C. Analyzing the behavior of a typical or average consumer or firm
D. Forecasting economic random events with a high level of accuracy
Answer: C
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A concentration ratio is used to
A) determine whether a market structure is oligopoly. B) determine the importance of labor in the production process. C) determine the degree of homogeneity in the market. D) see if a firm qualifies for federal assistance.
You have won the lottery. There are two payment options for you. The first option is a lump sum payment of $10 million that you will receive immediately. The second option is an annual payment of $1 million for each of the next 12 years
Assume there is no inflation. How would you make a decision between the two options?
The weekly demand for Kelewele among the 2019 cohort of BSc Admin students at the UGBS is
Based on the demand function above, is Kelewele a normal good or an inferior good? Explain your answer.
Recall the Application about rising oil prices and their effect on the U.S. economy to answer the following question(s).What does "the U.S. is a net exporter of petroleum products" mean? How can we be a net exporter when we still import oil from other countries?
What will be an ideal response?