An economic model is a(n)
a. philosophical inquiry
b. set of numbers that describe a firm (e.g., profits and assets)
c. abstract representation of reality
d. concrete representation of reality
e. ideal to which economic entities are compared
C
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A country is said to have an absolute advantage in producing a good over another country if that first country
A. is a major consumer of the good. B. is a more efficient producer of the good. C. can produce more units of the good. D. has a lower opportunity cost of producing the good.
The chain-weighted output index
A) uses only the current year's prices to calculate growth in real GDP. B) uses prices for the current year and the previous year to calculate growth in real GDP. C) must be calculated only every other year. D) is an inaccurate way to measure growth in real GDP and so has been replaced by the "nominal-to-real" index.
In the United States, a patent lasts
A) 7 years. B) 14 years. C) 20 years. D) forever.
To stay one step ahead of the forces of competition, a firm can adopt one of these strategies except
a. Cost reduction b. Product differentiation c. Advertising d. Reduction in the intensity of competition