An economic model is:
a. a plastic scaled version of the economy.
b. a complete depiction of reality.
c. an abstraction from reality.
d. applicable to consumer behavior but not to producer behavior.
e. not an accepted tool of the economics profession.
c
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What is TRUE about government budget deficits and surpluses since 1940?
A) There have been more government budget surpluses than government budget deficits. B) The number of government budget deficits is about the same as the number of government budget surpluses. C) Balanced budgets have been more common than government budget deficits or government budget surpluses. D) There have been more government budget deficits than government budget surpluses.
What is meant by the term opportunity cost?
What will be an ideal response?
Which of the following statements is not correct?
a. Private markets tend to over-produce products with negative externalities. b. Private markets tend to under-produce products with positive externalities. c. Private parties can bargain to efficient outcomes even in the presence of externalities. d. Private parties are usually more successful in achieving efficient outcomes than government policies in the presence of externalities.
What are some of the important questions regarding the assignment of decision rights in an organizational hierarchy?
What will be an ideal response?