Assumptions are necessary to
A) make economics a social science.
B) define a set of circumstances where a model is most likely to apply.
C) define the relationship between wants and resources under all circumstances.
D) define the specific cause and effect relationship that is being explained by social sciences.
B
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Under rent controls
A) there is a shortage of rental units. B) the quantity supplied of rental units is greater than it would be under freely competitive markets. C) there is less government involvement in rental markets overall because there is a better supply of low-income housing. D) all renters are better off than under freely competitive markets.
Lorenz curves tell us about the
A. absolute distribution of income. B. poverty line. C. incidence of malnutrition. D. relative distribution of income.
Given that shares are riskier than bonds, why do investors invest in equity?
What will be an ideal response?
If Gross Domestic Product (GDP) equals $900 billion, gross private investment expenditures are $200 billion, exports equal imports, and government spending is $400 billion, then
A. consumption expenditures are $200 billion. B. we cannot determine what expenditures on consumption are without more information. C. consumption expenditures are $300 billion. D. spending on consumer durables must be $400 million.