Economic models are used to:
A. explain every detail of an economic theory.
B. explore decision making by individuals, firms and other organizations.
C. build physical renditions of government construction projects.
D. represent the complexities of economic environments.
Answer: B
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According to The Economist magazine's Big Mac index, one of the most overvalued currencies as of July 2008 was the Norwegian kroner. Which of the following is a likely implication of that fact?
A) That goods and services are more expensive in Norway than in the U.S. B) That the Norwegian currency is going to be undervalued in the near future. C) That the Norwegian currency is likely to appreciate in the near future. D) That the Norwegian government is running a large deficit.
Because market price always tends back to the minimum average total cost for all identical firms in a perfectly competitive market in the long run, in theory:
A. price will be the same at any quantity. B. the supply curve may be downward sloping. C. the supply will remain a constant quantity. D. the supply curve will be upward sloping.
Recall the Application about the price competition between satellite and cable TV services to answer the following question(s).Recall the Application. In most cases where satellite TV service is introduced in an area with cable TV service, if the quality of cable TV service increases, then consumer surplus (in the cable TV market):
A. increases. B. decreases. C. drops to zero. D. becomes negative.
Data from the United Nations indicate that in 2014, ________ people experienced extreme hunger.
A. 125 million B. 870 million C. 5.4 billion D. almost 10 billion