Economic models
a. are always based on realistic assumptions.
b. usually predict perfectly.
c. can never be tested with real world data.
d. are used to describe cause-and-effect relationships.
e. are too simple to be of much use.
d
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Which of the following classifications is correct?
A. City streets are consumption goods because they wear out with use. B. Stocks are capital goods because when people buy and sell them they make a profit. C. The coffee maker in the coffee shop at an airport is a consumption good because people buy the coffee it produces. D. White House security is a government service because it is paid for by the government..
Which of the following acts required that financial derivatives be traded in established, regulated markets?
A. Glass-Steagall Banking Act B. Gramm-Leach-Bliley Financial Services Modernization Act C. Dodd-Frank Wall Street Reform and Consumer Protection Act D. Celler-Kefauver Financial Reform Act
Which of the following is included in M1?
a. savings accounts b. money market deposit accounts c. money market mutual funds d. travelers' checks e. None of the above are included.
Philosophical foundations of the European model were provided by:
a. Adam Smith b. David Ricardo c. The theory of social market economy d. Mercantilism e. Both c and d