Which of the following best illustrates the application of the model-building process to economics?
a. A labor economist notices that unemployment tends to be higher among teenagers than more experienced workers, develops a model, and gathers data to test the hypotheses in the model.
b. Two economists with differing political agendas argue about the best way to solve the Social Security problem on a Sunday morning talk show.
c. Economists come to believe that some economic models are true simply because prominent leading economists say they are true.
d. A Ph.D. student in economics develops a plausible mathematical model of an industry for his dissertation, but there is no data to test the model.
a
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If a good has an absolute price elasticity of 1, the demand for the good is
A) unit elastic. B) inelastic. C) perfectly elastic. D) elastic.
Graphically, a kinked demand curve is
a. more elastic to the right of the kink than to the left b. more inelastic to the right of the kink than to the left c. more inelastic to the left of the kink than to the right d. present when there is a monopoly e. bowed-in or bowed-out, depending on the kink
What are the tests used in police promotions?
What will be an ideal response?
Which of the diagrams correctly portrays a nondiscriminating pure monopolist's demand (D) and marginal revenue (MR) curves?
A. A.
B. B.
C. C.
D. D.