Economic models are often based on assumptions because they:
A) help simplify complex real-world phenomena.
B) help explain the past.
C) help test models even when relevant data are unavailable.
D) help predict the future with higher accuracy.
A model is based on an assumption that an additional year of education increases a student's future wage by 20%.
A
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Double coincidence of wants is avoided if money is used as a:
A. measure of value. B. medium of exchange. C. standard of deferred payment. D. store of value
Which of the following represents dead capital?
A) capital that lacks clear title of ownership B) capital that has worn out over time C) capital that has become obsolete D) none of the above
The price of bonds and the interest rate are
A. inversely related. B. positively related. C. related, but we are not sure how. D. unrelated.
Production decisions are centralized in a(n)
A. command economy. B. utopian economy. C. invisible-hand economy. D. laissez-faire economy.