Which of the following statements is (are) true?
A) A model is a set of simplifying assumptions about some aspect of the real world.
B) Models are based on assumed conditions that are simpler than those of the real world.
C) A model cannot be a complete representation of the real world.
D) All of the above are true.
Ans: D) All of the above are true.
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Since the mid-1980s, the debt-to-income ratio of American households
a. has remained about the same as the previous 25 years. b. has been slowly declining. c. has fluctuated between about 55 and 70 percent of after-tax income. d. has rapidly increased.
Even when there are only a few firms in a market, the market can still be competitive as long as barriers to entry are low. Markets of this type are called
a. monopolistic markets. b. price-taker markets. c. contestable markets. d. convertible markets.
Which of the following is NOT one of the basic questions that an economic system attempts to answer?
A) How to identify what people need? B) What to produce? C) How will goods and services be produced? D) For whom will goods and services be produced?
The demand facing a monopolistically competitive firm is ________ a monopolistic firm and ________ a perfectly competitive firm.
A. as elastic as; less elastic than B. less elastic than; more elastic than C. more elastic than; as elastic as D. more elastic than; less elastic than