Economists make assumptions because
a. they need to incorporate value judgments into their models.
b. analysis without assumptions would be impossibly complex.
c. they always have imperfect information about reality.
d. assumptions are the final product of careful economic analysis.
e. assumptions allow economists to ignore things that they cannot explain.
b
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A commercial bank puts the funds it receives from various sources into
A) securities, cash assets and loans. B) loans, notes and coins in the bank's vault and deposits. C) reserves, deposits and loans. D) securities, cash assets and deposits.
Refer to Figure 2-11. Which country has a comparative advantage in the production of cashews?
A) Pakistan B) Indonesia C) They have equal productive abilities. D) neither country
One of the results of Paul Romer's new growth theory is that investment in research and development will be too low in an economy. Explain how he comes to this conclusion
What will be an ideal response?
Short-run total cost is the sum of
a. short-run fixed cost, short-run variable cost, and short-run marginal costs. b. short-run fixed cost and short-run marginal costs. c. short-run variable cost and short-run costs. d. short-run fixed cost and short-run variable cost.