Holding all variables constant but one and assessing the impact of the one variable that has changed is an example of using
A) the ceteris paribus assumption.
B) an economic model based on unrealistic assumptions.
C) a flawed economic model.
D) an untestable proposition.
A
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Describe the principal factors that Adam Smith believed contribute to economic growth
Easy monetary policy will ________ net exports as a result of a ________ currency.
A. increase; weaker B. decrease; weaker C. decrease; stronger D. increase; stronger
GDP calculations tend to exclude all of the following EXCEPT:
A. illegal transactions. B. environmental quality. C. work that people do for themselves in their own homes. D. salaries paid to government employees.
Robinson Crusoe is stranded on an island. He finds that coconuts are freely available (zero harvest cost), but fish are difficult to harvest and require a lot of energy. As a result, harvesting fish has a high price
If coconuts and fish are imperfect substitutes, what is Robinson Crusoe likely to consume? A) He will consume more coconuts than fish. B) He will consume more fish than coconuts. C) He will consume equal amounts of both goods. D) Not enough information is given.