Which of the following statements is correct?
a. Few economic models incorporate assumptions.
b. Different economic models employ different sets of assumptions.
c. Good economic models attempt to mimic reality as closely as possible.
d. Economic models, to be accepted, must be tested by conducting experiments.
b
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What does GDP measure, and what is the formula for calculating GDP using the expenditures approach?
What will be an ideal response?
A spontaneous order emerges from individual decisions that cause something to "work" without anyone planning for it to "work".
Answer the following statement true (T) or false (F)
In the above figure showing a perfectly competitive firm's total revenue line, the firm's marginal revenue
A) falls as output increases. B) does not change as output increases. C) rises as output increases. D) cannot be determined.
The Doing Business reports are considered by many economists to have contributed to economic growth and poverty reduction. The effectiveness of the reports may be attributed to ________
A) their encouragement to governments to reduce impediments to business B) their encouragement to businesses to migrate to business-friendly locations C) their deepening of economists' understanding of economic growth D) their exposing of corrupt officials and practices