An economic model:
A. exactly explains what happens in the real economy.
B. discards unnecessary details to clearly demonstrate the central principles of the economic activity.
C. approximates all facets of what happens in the real economy.
D. does not make clear assumptions about the economic activity.
B. discards unnecessary details to clearly demonstrate the central principles of the economic activity.
You might also like to view...
Which of the following is not a reason why the prospects for the further expansion of developing country commodity exports are likely to be limited?
(a) Low income elasticities for these products. (b) Low likelihood of development of further synthetic substitutes. (c) Continued agricultural protection despite trade agreements. (d) Declining terms of trade.
M1 does not include
A) MMMFs. B) travelers' checks. C) currency. D) transaction accounts.
If the price of a product increases, the demand for the resource used in producing that product decreases
a. True b. False Indicate whether the statement is true or false
Comparing how many dollars it takes to attend college each year to annual earnings on a job represents the use of money as a:
A. medium of exchange. B. unit of account. C. store of value. D. store of coincidence.