Professor's economics students are constructing models for how gasoline prices change. Maria's model has very realistic assumptions and is quite complex. Anna's model is less complicated and less realistic
Maria's model correctly predicts gas price increases 5% of the time. Anna's model predicts correctly 15% of the time. On the basis of usefulness or "goodness," Professor will give which student's model the higher grade and why? A) Maria's model gets the higher grade because it is more complex.
B) Anna's model gets the higher grade because it is simpler.
C) Maria's model gets the higher grade because it is more realistic.
D) Anna's model gets the higher grade because it predicts accurately more often.
D
You might also like to view...
The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost of providing manatee swimming tours. At 1 manatee swim per week, Kaley's marginal benefit is ________ and Scott's marginal cost is ________
A) $40; $10 B) $40; $40 C) $90; $50 D) None of the above answers is correct.
Among the prerequisites to economic development is
a. stability, which is provided by a traditional way of doing things b. a high birth rate c. low levels of saving d. the development of infrastructure such as roads and electricity e. the development of infrastructure such as forward and backward linkages
Refer to Exhibit 14-1. What sequence of points shows the short- and long-run consequences of a fall in velocity under monetarist assumptions?
a. B-A b. A-E-B c. A-D-B d. B-D-A
If marginal cost is between average variable cost and average total cost, then
A. average variable cost is increasing and average total cost is decreasing. B. both average variable cost and average total cost are increasing. C. both average variable cost and average total cost are decreasing. D. average variable cost is decreasing and average total cost is increasing.