Assumptions in models tend to make
A) the model predict what the scientist wants the results to be.
B) the model more realistic.
C) the model more applicable to specific circumstances.
D) the model always predict the future accurately.
C
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
A leveraged buyout is
A) a form of short-term lending to finance companies when they buy a company. B) the acquisition of a company financed by debt. C) the sale of commercial paper to finance purchases of bundles of securitized non-traded loans. D) borrowing by finance companies to make loans.
The fact that some consumers will purchase a nine-ounce bottle of Evian water for $1.49, equivalent to $21.19 per gallon, illustrates the principle that the additional cost of the water is greater than the additional benefit
a. True b. False
Assume that all of the inputs used in a particular perfectly competitive industry can be increased without bidding up their prices. The long run supply curve for that industry will be: a. vertical
b. upward sloping. c. horizontal. d. downward sloping.