Economic models are
A) always based on laboratory methods similar to natural sciences.
B) a simplified representations of the real world.
C) used only in conducting experiments about how people behave.
D) used in macroeconomic analysis but not in microeconomic analysis.
Answer: B
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What is the great advantage of adjudication over legislation in the management of negative externalities?
A) Adjudication has lower costs. B) Adjudication maintains the continuity of expectations. C) Courts are bound by the rule of law and legislatures are not. D) Courts can act more quickly than legislatures. E) There are no clear answers in such cases.
Refer to Figure 13-1. Ceteris paribus, a decrease in firms' expectations of the future profitability of investment spending would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
The text lists 5 key provisions of the Dodd-Frank Act. What are those 5 key provisions?
What will be an ideal response?
The term crowding out refers to decreases in the interest rate caused by government budget surpluses
a. True b. False Indicate whether the statement is true or false