Which of the following statements is TRUE?
A) No economic model captures every detail that affects a problem.
B) Economic models always make accurate predictions about behaviors.
C) Economic models must fully reflect reality.
D) Economic models use economists' opinions with no use of data.
Answer: A
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Select the phrase that correctly completes the following statement. "A decrease in the number of manufacturers caused a decrease in the supply of sailboats. As a result
A) the price of sailboats increased and the quantity of sailboats demanded decreased." B) the equilibrium quantity of sailboats increased." C) the price of sailboats increased and the demand for sailboats decreased." D) the price of sailboats increased. The higher price caused the supply of sailboats to increase."
Double taxation refers to the negative feature of
a. all businesses in the United States b. sole proprietorships c. corporations d. the federal and state tax systems e. partnerships
If Japanese tourists visit Yellowstone Park, what is the effect in the foreign exchange market?
a. It will increase demand for Japanese yen. b. It will decrease demand for Japanese yen. c. It will increase supply of Japanese yen. d. It will decrease supply of Japanese yen.
In one hour, Sue can produce 40 caps or 4 jackets and Tessa can produce 80 caps or 4 jackets. Sue's opportunity cost of producing a cap is _____ jackets and Tessa's opportunity cost of producing a cap is ____ jackets.
Fill in the blank(s) with the appropriate word(s).