The supply and demand model is the workhorse of the principles of economics because it:
A. follows directly from the inductive approach to economics.
B. is a useful model by which students can be introduced to economic reasoning.
C. does not have to have any empirical testing to back up the results of the model.
D. is a perfect model and can never be improved upon.
Answer: B
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What will be an ideal response?
The terms of trade are
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Banks have responded to new regulations resulting from the Dodd-Frank Act in all of the following ways EXCEPT:
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