All scientific models, including economic models, simplify reality in order to improve our understanding of it
a. True
b. False
Indicate whether the statement is true or false
True
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The most important derivative instruments are
A) futures, options, and swaps. B) common and preferred stocks. C) corporate bonds. D) government bonds.
Changes in aggregate demand can cause fluctuations in _____ and _____ in the short run, and only ____ in the long run
Fill in the blank(s) with correct word
An industry is producing at the least-cost rate of production when:
A. Marginal cost is greater than average total cost B. Marginal revenue is greater than price C. Price and the minimum average cost are equal D. Price and marginal revenue are equal
Suppose the demand for roses increases from 500 to 600 stems when income rises from $10,000 to $20,000. Income elasticity for roses is:
A. 0.27. B. 0.02. C. 2. D. 3.6.