Economic models do not reflect the full complexity of reality, but instead are based on:
A. Simplifications
B. Tradeoffs
C. Value judgments
D. Predictions
Answer: A
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Compared to the United States, over the last three decades unemployment in Western Europe has been ________ and the rate of job creation has been ________.
A. higher; slower B. higher; faster C. lower; slower D. lower; faster
If individuals are paid the wage at which the supply of labor is equal to the demand for labor,
A) no unemployment exists, and workers have no incentive to shirk. B) no unemployment exists, and workers have an incentive to shirk. C) some unemployment still exists, but workers have no incentive to shirk. D) some unemployment still exists, but managers can tell whether or not workers are shirking.
When a transfer price is set higher
a. the profits of the division producing the intermediate product will rise b. the profits of the division producing the intermediate product will fall c. the costs of the division producing the intermediate product will rise d. the costs of the division producing the intermediate product will fall
What is the percentage of income received by the middle three quintiles on line Z?
