Most economic model builders would claim that their models
a. include all real-world economic activities
b. portray how the real economy works
c. take into account all the complexities of how people behave
d. contradict the ceteris paribus assumption
e. consider all the important pressing issues people confront
B
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An economist says: "The supply curve has two interpretations." What does the economist mean?
What will be an ideal response?
Juanita goes to the Hardware Emporium to buy a new circular saw. She is willing to pay $120 for a new saw, but buys one on sale for $85. Juanita's consumer surplus from the purchase is
A) $35. B) $85. C) $120. D) $205.
In differentiating between the short- and long-run elasticities, when economists talk about short-run elasticities,
a. b and c. b. there is no need to mention short versus long run. c. the only issues are price and quantity. d. short-run elasticities are usually higher. e. short-run elasticities are usually lower.
By comparing the world price of pecans to India's domestic price of pecans, we can determine whether India
a. will export pecans (assuming trade is allowed). b. will import pecans (assuming trade is allowed). c. has a comparative advantage in producing pecans. d. All of the above are correct.