Because models are used to explain economic behavior
A. models can be either simple or complex so long as it explains economic behavior.
B. models must be simple.
C. models must be complex.
D. the assumptions must be complex while the models themselves are simple.
Answer: A
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Which oligopoly model results in firms successively undercutting their rivals' prices until the competitive outcome is reached?
a. The contestable market model. b. The Cournot model of oligopoly. c. The Bertrand model of oligopoly. d. The monopolistic competition model.
A normative statement
A) depends on someone's values. B) cannot use the word "should." C) says what is currently believed about the way the world operates. D) must be tested to determine if it is correct. E) can be tested to determine if it is correct.
Money is used as a ________ when you visit the local farmers' market and compare prices across different vendors
A) means of payment B) unit of account C) store of value D) medium of exchange E) measure of barter
Which of the following increases the information available to prospective buyers?
A) The auto dealer that allows customers to test drive their cars B) The grocer that packages its meat in cellophane C) The college that organizes orientation sessions for potential students D) The baker that gives customers free samples E) All of the above.