Economists use abstract models because:
A. every economic situation is essentially the same, so specific details are unnecessary.
B. every economic situation is unique, so it is impossible to make generalizations.
C. computers have allowed economists to develop abstract models.
D. they are useful for describing general patterns of behavior.
Answer: D
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The McFadden Act was passed to prevent
A) banks from competing on the basis of deposit rates. B) foreign banks from operating in the United States. C) large nationwide banks from forming. D) banks from holding corporate stock as an asset.
How much of U.S. garbage is disposed of in landfills?
a. 25 percent b. 40 percent c. 60 percent d. 70 percent e. 100 percent
Market economies produce outcomes that are
A. virtually ideal in all respects. B. inferior to most other systems. C. far from ideal, in some respects. D. virtually indistinguishable from command economies.
The ratio at which a country can trade its exports for imports from other countries is called
A) a trade barrier. B) the terms of trade. C) autarky. D) a free trade agreement.