In constructing models, economists
a. leave out equations, since equations and models tend to contradict one another.
b. ignore the long run, since models are useful only for short-run analysis.
c. sometimes make assumptions that are contrary to features of the real world.
d. try to include every feature of the economy.
c
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The marginal rate of substitution is the slope of the indifference curve
a. True b. False Indicate whether the statement is true or false
What has income per person done during the past 200 years?
What will be an ideal response?
Individuals will increase their saving as
A. the interest rate falls. B. business investment falls. C. the interest rate increases. D. the rate of inflation increases.
Labor productivity increases with
A) increases in consumption expenditure. B) increases in depreciation. C) increases in capital. D) All of the above answers are correct.