In an economic model, assumptions
A. are not important in determining the usefulness of the model.
B. must be applicable to all real-world situations.
C. must be eliminated before being used to make sure the model is realistic.
D. define the set of circumstances in which the model is most likely to be applicable in the real world.
Answer: D
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Firms that can price discriminate between customers do so to ________
A) increase consumer surplus B) increase employment C) increase their profit D) decrease the quantity they produce
Autonomous expenditure is a type of expenditure that does not depend on
A) GDP. B) wealth. C) expectations. D) rates.
Which of the following is included in GDP?
a. life expectancy b. literacy c. health d. infant mortality
Which of the following is a driving force underlying economic growth?
a. trade restrictions that protect domestic businesses from competition with foreign producers b. regulations that require businesses to obtain permission from the government before starting a new business c. tax increases that expand the revenues of the government d. entrepreneurial discovery and production of improved products