Economic models are
A) always based on laboratory methods similar to natural sciences.
B) a simplified representations of the real world.
C) used only in microeconomic analysis by households.
D) used only in macroeconomic analysis by business firms.
B
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A network externality causes firms to sacrifice profits in the short run in order to satisfy their customers and increase their long-run profits
Indicate whether the statement is true or false
As consumers have a longer time period to respond, the demand for a product typically becomes more inelastic
a. True b. False
If real gross domestic product (GDP) for a particular year is $5 trillion and the GDP price index for that year is 136, the nominal gross domestic product (GDP) for that year is _____
a. $3.7 trillion b. $4 trillion c. $6.8 trillion d. $27 trillion e. $68 trillion
The use of abstraction in economic analysis is one of its primary weaknesses.
Answer the following statement true (T) or false (F)