Which is NOT true about the use of economic models?
A. Economic models are simplified representations of the real world.
B. Economists use what has already happened in the real world to test their theories.
C. Economists do not typically use experiments in science laboratories to test their theories.
D. Economists are employed to explain economic phenomena but are never used to predict what might happen next.
Answer: D
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The table above presents the production possibilities frontier for a nation
Using the information in the table, when moving from possibility C to D, the cost of 1 unit of a capital good in terms of the consumption goods forgone is ________ consumption goods per capital good. A) 10 B) 25 C) 15 D) 20 E) an undefined amount of
All of the following are traditional economic views except:
A. there is no such thing as a bad choice. B. choice architecture is ineffective. C. revealed preference shows researchers what the bad choices are. D. choice architects have a responsibility to remain neutral when it comes to choices.
If the interest rate is above the Fed's target, the Fed should
a. buy bonds to increase the money supply. b. buy bonds to decrease the money supply. c. sell bonds to increase the money supply. d. sell bonds to decrease the money supply.
Which organization primarily makes and guarantees loans to developing nations for basic development projects such as the construction of dams, roads, and schools?
A. The World Bank B. The New Economic Order C. The Federal Reserve System D. The Committee on Economic Development