Which is NOT true about the use of economic models?
A) Economic models are simplified representations of the real world.
B) Economists always use experiments in science laboratories to test their theories.
C) Economists use what has already happened in the real world to test their theories.
D) Economists are employed to explain economic phenomena but are never used to predict what might happen next.
Answer: D
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Answer the next question based on the following demand and cost data faced by a pure monopolistDemand DataCost DataPriceQuantity DemandedOutputTotal Cost$2.7533$4.002.50444.502.25554.752.00665.751.75777.75The profit-maximizing price for the pure monopoly will be ________.
A. $2.00 B. $1.75 C. $2.25 D. $2.50
If the currency drain ratio is 30 percent and the desired reserve ratio is 10 percent, the money multiplier is
A) 0.80. B) 1.25. C) 3.25. D) 5.00. E) 10.0.
In which one of the following currencies is an international loan likely to be measured?
a. German mark b. Japanese yen c. Chinese yuan d. Swiss franc
If workers received a 5 percent wage increase and the rate of inflation was 3 percent, then their real wage:
A. remained constant. B. equaled the nominal wage. C. decreased. D. increased.