Which of the following best describes how economists test the empirical predictions of economic models?
A) Economists survey individuals to learn about how people think through decisions about how much to purchase or to produce.
B) Economists collect and analyze real-world observations of people's actions to discern if those actions accord with theories' predictions.
C) Based on theories about thought processes, economists seek to determine which thought processes predominate in determining how a person decides what actions to take.
D) Recognizing that people always do what they say they will do, economists rely exclusively on information gleaned from polls and surveys conducted by poll takers and market researchers.
B
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If the desired reserve ratio is 7 percent and a bank has $10,000 of deposits, then its desired reserves are
A) $7. B) $700. C) $9,300. D) $930. E) $7,000.
Subsidiarity requires nations to give up some of their national sovereignty
Indicate whether the statement is true or false
Based on the table showing health care spending in selected countries, which country shown spends the lowest portion of GDP on healthcare?
a. Germany
b. Japan
c. Mexico
d. Switzerland
Compared to perfectly competitive firms, the demand curve for a monopolist will be
A. as elastic. B. less elastic. C. perfectly elastic. D. more elastic.