Economists make use of assumptions, some of which are unrealistic, for the purpose of
a. teaching economics to people who have never before studied economics.
b. advancing their political agendas.
c. developing models when the scientific method cannot be used.
d. focusing their thinking.
d
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Who among the following is NOT frictionally unemployed?
A) Andrew, a teenager who has just entered the labor market looking for his first part-time job B) Barbara, who is re-entering the labor market after a divorce C) Charles, who was laid off from his factory job but expects to be recalled in a few weeks D) Diana, who has quit her job and is now looking for another
The region of economies of scale is that in which:
a. short-run marginal cost is falling as output expands b. short-run average total cost is falling as output expands. c. long-run marginal cost is falling as output expands. d. long-run average total cost is falling as output expands.
Buyers and sellers rarely share the burden of a tax equally
a. True b. False Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1) The two most important investor preferences are a desire for high rates of return and a dislike of inflation. 2) Arbitrage equates rates of return across assets of all risk levels. 3) Average expected rates of return and levels of risk are positively related. 4) Economic investment refers to the buying or selling of any asset in expectation of a financial gain.