To abstract from reality in an economic model means that:
a. we include only a few of the essential aspects of reality.
b. the economic study surveys only a very limited period of time.
c. we include only those elements which support our hypothesis.
d. the model includes every aspect of the real world.
e. the model examines the actions of the consumers in the absence of producers and the government.
a
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The overriding objective of a cartel is to maximize the amount of profit each of its members can earn through cooperation with the other members
Indicate whether the statement is true or false
Tax avoidance is
A. illegal in the United States. B. changing your behavior so as to reduce your tax liability. C. the same as tax evasion. D. a minor source of concern in the United States.
Which of the following is not included in census income?
a. wages and salaries. b. property income. c. cash welfare benefits. d. in-kind transfers.
Competitive firms cannot individually affect market price because:
A.) There is an infinite demand for their goods. B.) The market demand curve is flat or horizontal. C.) Their individual production is insignificant relative to the production of the industry. D.) The government exercises control over the market power of competitive firms.