In building a model to analyze economic situations, one of the important assumptions is
A. cognitive dissonance.
B. conversion abstraction.
C. scarcity.
D. ceteris paribus.
Answer: D
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The financial crisis of 2008 was triggered by:
A. a speculative bubble in the U.S. housing market. B. austerity measures introduced by the U.S. government to reduce the federal deficit. C. increased trade with China. D. the economic integration of the European Union.
Draw two graphs: one showing the relationship of average product, marginal product, and total product; the other showing the relationship of AFC, AVC, and ATC. Then relate the shape of the marginal product to that of the marginal cost.
What will be an ideal response?
Suppose a previously competitive labor market turns into a monopsony. The labor supply curve faced by the new monopsonist is
a. above the labor supply curve under perfect competition b. the market supply curve of labor c. below the labor supply curve under perfect competition d. changed because workers are now more willing to supply labor e. perfectly horizontal
If the dollar depreciates, it can be said that
a. foreign countries no longer respect the United States. b. it falls in value within the United States. c. it takes fewer dollars to buy foreign currencies. d. other currencies appreciate.