Economic models are:
A) created and used in order to duplicate virtually every aspect of the real world.
B) useless if they are simple.
C) made generally of wood, plastic, and/or metal.
D) built using assumptions.
Ans: D) built using assumptions.
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Refer to Table 8-19. Given the information above, calculate the GDP deflator in 2015
A) 87 B) 95 C) 105 D) 114
Refer to Figure 16-3. What prices are charged in the two markets?
A) price in market A = price in market B = $10 B) price in market A = price in market B = $5 C) price in market A = $10; price in market B = $15 D) price in market A = price in market B = $15
In general, a change in the price of a good:
A. causes a substitution effect only. B. causes an income effect only. C. causes both an income and substitution effect. D. usually has no effect.
According to the graph shown, producing 9 units earns profits that are:
A. higher than output of 11 units, and the firm should increase production. B. higher than output of 11 units, and the firm should decrease production. C. lower than output of 11 units, and the firm should increase production. D. lower than output of 11 units, and the firm should decrease production.