Economists need to develop abstractions in order to:
a. avoid analyzing real-world economic interactions, which are too complicated to understand.
b. distinguish normative economic behavior from positive economic behavior
c. avoid committing the fallacy of composition.
d. understand and explain economic behavior.
d
Economics
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If an individual discounts delayed utils with a weight of 1/4, the present value of 90 utils to be received after a year is:
A) 17.25 utils. B) 22.5 utils. C) 90 utils. D) 460 utils.
Economics
When money is accepted as payment in a market transaction, it is functioning as a
A) store of value. B) unit of accounting. C) medium of exchange. D) unit of investment.
Economics
Owning a patent can provide a firm with monopolistic power
a. True b. False Indicate whether the statement is true or false
Economics
Assuming all excess reserves are loaned out, if the reserve ratio is 25 percent, the money multiplier will be equal to:
A. 0.5. B. 2.5. C. 4. D. 5.
Economics