Assumptions are necessary to
A. define the specific cause and effect relationship that is being explained by social sciences.
B. define a set of circumstances where a model is most likely to apply.
C. make economics a social science.
D. define the relationship between wants and resources under all circumstances.
Answer: B
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Coal is an example of
A) a nonrenewable natural resource. B) a renewable natural resource. C) capital. D) a casual resource.
An economist who is studying the relationship between the money supply, interest rates, and the rate of inflation is engaged in:
A. macroeconomic research. B. microeconomic research. C. empirical research because there is no economic theory related to these variables. D. theoretical research because there is no data on these variables.
The trend back toward greater inequality in the 1970s and 1980s was caused by:
A. a fall in the real income of the poor. B. a rise in the real income of the poor. C. a movement toward progressive taxation. D. an increase in government funding for social programs.
Refer to the information provided in Figure 3.13 below to answer the question(s) that follow.
Figure 3.13Refer to Figure 3.13. Assume hamburgers and hot dogs are substitutes. A decrease in the price of hot dogs will cause a movement from
A. D2 to D1. B. D1 to D2. C. Point F to Point G. D. Point A to Point B.