When building a model, an economist must:
A. adjust for exceptional situations.
B. provide a complete description of reality.
C. make simplifying assumptions.
D. develop a set of behavioral equations.
Answer: C
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During the 1980s, Harley-Davidson, the American motorcycle maker, asked Congress for tariff protection from large motorcycles imported from Japan
Harley-Davidson argued that their company needed protection so the company could reorganize and, after some time had passed, could become more competitive. Harley-Davidson's argument is similar to the ________ argument for protection. A) save domestic jobs B) national security C) anti-dumping D) infant-industry E) bring diversity and stability
In which market structure does a firm have the LEAST influence over the market price?
A) monopoly B) monopolistic competition C) oligopoly D) perfect competition
Earth Movers & Shakers operates 3 iron ore mines. The accompanying table shows each mine's total daily production and the current number of miners at each mine. All miners work for the same wage, and each miner in any given mine produces the same number of tons per day as every other miner in that mine. Total Tons Per DayNumber of MinersMother Lode10025Scraping Bottom3010Middle Drift7515 The opportunity cost of moving one miner from Mother Lode to another mine is:
A. 3 tons per day. B. 4 tons per day. C. 1 ton per day. D. 2 tons per day.
If firms in a monopolistically competitive industry are operating with positive economic profit, over time we would see
A) firms alter their advertising rates until they made at least normal profits. B) some firms entering the industry, causing the market supply curve to shift to the right, lowering price. C) some firms entering the industry, causing the demand curves of the existing firms to shift to the left. D) some firms entering the industry, causing the demand curves of the existing firms to shift to the right.