Which of the following is the second step in the model-building process?
a. Include all possible variables that affect the model.
b. Collect data and test the model.
c. Identify the problem.
d. Develop a model based on simplified assumptions.
d
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Refer to the scenario above. What is the equilibrium outcome in this case?
A) Both firms will dump their waste into the river. B) Neither of the firms will dump its waste into the river. C) Firm 1 will dump its waste into the river, while Firm 2 will not dump its waste. D) Firm 2 will dump its waste into the river, while Firm 1 will not dump its waste.
The benefits of economic growth are ________, while the costs of economic growth are ________.
A. increased output per person; too small for concern B. more current consumption; less future consumption C. increased output per person; less future consumption D. increased output per person; the consumption sacrificed in exchange for capital formation
The antitrust case against IBM was dropped after 13 years of litigation because
A. the Celler-Kefauver Act was passed and it changed the relevant antitrust rules. B. IBM proved that the firm did not commit bad acts. C. antitrust laws shifted from a rule of reason to a per se rule. D. new companies began competing in the market and the political environment changed to a less restrictive interpretation of antitrust laws.
If the government stops enforcing its collusion laws and oligopolies are now able to collude, they will ________ the price charged and ________ the total output produced.
A. decrease; increase B. decrease; decrease C. increase; decrease D. increase; increase