Economists use abstract models because:
A. every economic situation is essentially the same, so specific details are unnecessary.
B. every economic situation is unique, so it is impossible to make generalizations.
C. they are useful for describing general patterns of behavior.
D. computers have allowed economists to develop abstract models.
Answer: C
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________ economists believe that the economy is self-regulating and will be at full employment as long as monetary policy is not erratic
A) Keynesian B) Monetarist C) Classical D) All
Sammy is willing to lend Oscar $625 today so Oscar can purchase a new set of tires for his pickup truck. Oscar agrees to pay the loan back plus 5% interest in one year. What is the future value of this loan?
A) $595.24 B) $656.25 C) $750.00 D) $812.50
The Monetary Control Act of 1980:
a. required banks to make home loans. b. eliminated many forms of competition among financial institutions. c. created sharper distinctions among various financial institutions. d. none of these.
The differences between a competitive market and a monopoly include all of these except
A. excess profits would be competed away in a competitive market, but persist in a monopolistic market. B. a competitive market would work toward production of the quantity consumers seek, while a monopolistic market may restrict output to raise short term prices. C. a competitive market’s cost curves will shift with the market, while a monopoly’s cost curves will remain stable. D. a competitive market would work toward production of the quantity consumers seek, while a monopolistic market may restrict output to raise long term prices.