How are economic abstractions similar to economic assumptions?
a. They both deal with specifics.
b. They both simplify.
c. They both reflect the real world precisely.
d. They both involve detailed facts.
b. They both simplify.
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Pension funds ________
A) acquire access to funds by accepting deposits then using these monies to lend to households and firms B) raise funds by selling commercial paper then lend these funds to consumers C) are a special type of mutual fund D) acquire access to monies through the payment of premiums by employees
Unlike an accountant, an economist measures costs on a(n) ________ basis
A) explicit B) replacement C) historical D) conservative
A utility-maximizing consumer would never purchase a good if the:
a. MU/P is positive. b. marginal utility is positive. c. marginal utility is negative. d. none of these is correct.
To calculate tax revenue:
A. divide total revenues by the tax per unit. B. multiply total revenues by the tax per unit. C. multiply the tax per unit by the number of units of the item being taxed. D. multiply the tax per unit by the price of the unit being taxed.