Is it possible to express an economic model in words without diagrams?
A. No, models can only be stated in diagrams.
B. No, the very definition of model requires mathematical form.
C. Yes, some of the simplest models are verbal statements.
D. Yes, although the best models always use diagrams.
E. Uncertain, economic theory has not answered this question yet.
Answer: C
You might also like to view...
According to the new classical view, aggregate output will differ from full-employment output
A) whenever saving does not equal investment. B) only if the actual price level does not equal the expected price level. C) only if the federal government's expenditures are greater than its tax receipts. D) whenever imports exceed exports.
Which of the following is the definition of wealth?
a. Real disposable income b. The total value of assets c. Real income d. The value of liabilities minus the value of assets e. The value of assets minus the value of outstanding liabilities
Economies of scale is a short-run phenomenon
Indicate whether the statement is true or false
The increase in the market value of a good at a particular stage of production is known as
A. Cost based accounting. B. Value added. C. The input price. D. Profit.