What makes a model compelling?

a. its predictions
b. its mathematical structure
c. its assumptions
d. its simplicity


Ans: a. its predictions

Economics

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Which of the following is an example of a consumption expenditure?

A) the purchase of a ticket to a New Orleans Saints game B) the salary paid to the mayor of Denver C) the construction of a new public library D) the purchase of a new fire truck

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How can a firm be made better off by limiting its options?

What will be an ideal response?

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A firm that has negative economic profits has accounting profits that are

A) zero. B) positive. C) negative. D) indeterminate without more information.

Economics

A signal works best if

a. it is acquired with equal ease by all workers b. it is not acquired with equal ease by all workers c. it is not understood by the employer d. it is not understood by the employee e. wages are allowed to vary

Economics