Explain how a model can be useful even if it is not realistic
What will be an ideal response?
Models are used to simplify reality to expose only those aspects of behavior that are important to the question being asked. Thus, while not realistic, the model gets at the heart of the matter and allows us to ignore irrelevant details.
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The main policy-making body of the Federal Reserve System is the Federal Open Market committee
Indicate whether the statement is true or false
The United States economy has experienced a decrease in competition over the last three decades
a. True b. False
An increase in income in other countries, other things equal, would cause U.S. _____
a. exports to decrease and imports to increase b. exports to increase and imports to increase c. imports to decrease and exports to decrease d. imports to increase and exports to remain unchanged e. imports to remain unchanged and exports to increase
To display information on two variables, an economist must use
a. a bar graph. b. a pie chart. c. the coordinate system. d. a time-series graph.