Economists make assumptions to
a. mimic the methodologies employed by other scientists.
b. minimize the number of experiments that yield no useful data.
c. minimize the likelihood that some aspect of the problem at hand is being overlooked.
d. focus their thinking on the essence of the problem at hand.
d
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Securitization is the process by which financial institutions
A) pool together a group of loans and then issue securities backed by the pool. B) determine the composition of their assets that will yield the optimal amount of security for their financial health. C) borrow funds from the Federal Reserve and then use those funds to make loans to their customers. D) determine sub-prime mortgage rates.
If a perfectly competitive firm finds that price is less than average variable cost, it should:
A. increase output until price equals marginal cost. B. decrease output until price equals marginal cost. C. shut down immediately. D. not adjust output if marginal cost equals price.
If a teacher was curious to see if collaboration among students leads to higher grades, which of the following models would be the best to use?
A. Traditional models B. Regression models C. Butterfly effect model D. Heuristic models
A depreciation in the value of the U.S. dollar would:
A. encourage foreigners to travel on American owned airlines. B. make U.S. goods more expensive to foreign consumers. C. decrease the number of dollars it takes to buy a Swiss franc. D. make it more expensive for U.S. citizens to travel abroad.