An economic model is useful only if it:
A. contains no positive statements.
B. captures all the complexities of reality.
C. yields accurate predictions.
D. has both macro- and microeconomic applications.
Answer: C
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Derive the budget line equation for the case where good 2 is a composite good. What is the vertical intercept and what is the slope?
What will be an ideal response?
Providing a good would likely be most difficult when the project involves assembling
A) a few parcels of contiguous land. B) a few parcels of noncontiguous land. C) many parcels of contiguous land. D) many parcels of noncontiguous land.
If M were 10,000, P were 10, and Q were 5,000, how much would V be?
What will be an ideal response?
Data indicates that recessions following financial crises ________ recessions which do not follow financial crises
A) are more severe than B) are less severe than C) are equally severe as D) Data does not show any link between the severity of recessions following financial crises.