An appropriate test of the effectiveness of an economic model is
A) the number of variables contained within the model.
B) the model's ability to predict future economic activity.
C) the number of economists who have worked on the model.
D) the number of assumptions which the economist has made.
Answer: B
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Refer to the graph shown. If labor costs $10 per unit and machines cost $15 per unit, the economically efficient cost of producing 1,000 units of output is:
A. $100. B. $300. C. $150. D. impossible to determine using the information given.
As GMB moves to select a new passive restraint safety system for its buses, it finds that its competitor, VolgaBus, opposes the move with an alternative technology. GMB must now evaluate its strategy and determine whether
A. GMB used the circle technique to arrive at its decision. B. the secure strategy is the best alternative. C. VolgaBus should really be the first mover. D. VolgaBus's alternative is credible.
When a country that imports shoes imposes a tariff on shoes, buyers of shoes in that country become worse off and sellers of shoes in that country become better off
a. True b. False Indicate whether the statement is true or false
___________ economics led to the creation of the communist state in Russia, Cuba, and other nations.
A. Malthusian B. Marxist C. Smithian D. None of these choices are correct