Economists use abstract models because:
A. every economic situation is essentially the same, so specific details are unnecessary.
B. they are useful for describing general patterns of behavior.
C. computers have allowed economists to develop abstract models.
D. every economic situation is unique, so it is impossible to make generalizations.
Answer: B
You might also like to view...
In the above figure, if the interest rate is 4 percent, people
A) sell bonds so as to convert them into money. B) buy bonds so as to have a better store of value. C) petition the Fed to tighten the quantity of money. D) buy stocks, because stocks are more liquid than currency.
Alex is hired as a sales agent and receives 10% commission on the sales price. The contract he signed is a
A) fixed-fee contract. B) hire contract. C) contingent contract. D) sharing contract.
The import demand curve shows the amount of the home country's:
a. surplus at various prices below the "no-trade" equilibrium. b. shortage at various prices below the "no-trade" equilibrium. c. equilibrium "no-trade" quantity demanded. d. surplus at various prices above the "no-trade" equilibrium. e. shortage at various prices above the "no-trade" equilibrium.
A patent is used to
a. disseminate information. b. offset the negative effects of taxes. c. protect inventors for as long as they live. d. assign property rights.