A simplifying assumption
a. affects the important conclusions of an economic model
b. increases the level of detail in an economic model
c. makes an economic model a more concrete representation of reality
d. eliminates unnecessary details from an economic model
e. limits the validity of an economic model's conclusions
D
You might also like to view...
Which of the following illustrates the concept of external benefit?
A) Good weather increases the size of the wheat crop. B) A new pesticide increases the size of the wheat crop. C) A gardener enjoys his flowers. D) Neighbors enjoy a gardener's flowers.
With few applicants and several key positions to fill, the owner of a computer support company increased the starting wage offered from $20.00 to $25.00 per hour. With the higher wage, there were more qualified applicants than needed, and all the positions were filled. What is true of the increased wage offer?
a. It sets $25.00 as the equilibrium wage. b. It establishes the equilibrium quantity. c. It attracted a surplus of labor. d. The quantity demanded exceeded the quantity supplied.
Recall the Application about the merger of Sirius Satellite Radio and XM Satellite Radio to answer the following question(s).Recall the Application. Sirius and XM proposed the merger because they were:
A. losing money because their fixed costs were very high. B. losing money because they faced the advertisers' dilemma. C. earning duopolists' profits that were greater than zero, but knew they could earn more as a single firm. D. losing money because their variable costs were higher than the price they could charge.
The largest category of legal immigrants into the U.S. in 2011 was:
A. Family-sponsored immigrants B. Refugees C. Employment-based preferences D. Diversity immigrants