The one thing that all economic models have in common is the
a. emphasis on macroeconomics
b. attempt to explain market prices
c. analysis of what ought to be
d. use of abstraction
e. ability to describe economic realities exactly
D
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Use the following graph, which shows the market for euros, to answer the next question.
Assume the United States and European governments adopt a system of flexible exchange rates. If currency traders think the European economy will experience a recession and the U.S. economy will not, this will most likely cause ________.
A. the euro to depreciate B. the U.S. dollar to depreciate C. the supply of euros to decrease D. the euro to appreciate
To ask "what causes a recession" is the same as asking
A) "why does supply meet demand?" B) "what is the link between price elasticity of demand and price elasticity of supply?" C) "why have so many individuals made errors all at once?" D) "why have price controls failed us?"
Because of their derived nature, resource markets are completely different from any other type of market studied by economists
a. True b. False Indicate whether the statement is true or false
Nominal GDP will definitely increase when
a. prices increase and output increases. b. prices increase and output decreases. c. prices decrease and output increases. d. All of the above are correct.