Any economic model should be judged primarily on
A. how realistic its assumptions are.
B. how easy the model is to use.
C. how many aspects of real-world behavior and choices are incorporated in the model.
D. how original the model is compared to other models.
E. how accurately its predictions match observed behavior.
Answer: E
You might also like to view...
Efficiency wages:
A) can decrease costs if workers' productivity varies directly with wage rates. B) can be used to reduce wage rigidity. C) can lead to wage rigidity. D) can increase profits if productivity of workers is fixed.
In 1940 _____ of the population over 25 had a college degree
a. less than 5 percent b. around 10 percent c. around 15 percent d. more than 20 percent
Consider an economy made up of 100 people, 60 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The number of people in the civilian labor force is:
a. 30. b. 60. c. 85. d. 90. e. 70.
The Constitution of the United States says nothing about state economic activity.
A. True B. False C. Uncertain