Regarding economic models, which of the following statements is NOT true?
a. An economic model is a simplified representation of a theory or part of a theory
b. An economic model can provide answers for policy makers.
c. An economic model can illuminate an important economic problem
d. An economic model can depict 3-variable diagrams.
b
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The HPV vaccine protects against human papillomavirus (HPV) that causes cancer. It protects both the person getting the vaccine and the sexual partners of that person
To encourage the efficient number of people to be vaccinated the government could A) give producers a subsidy equal to the private marginal benefit. B) give consumers a voucher equal to the marginal external benefit. C) impose a tax equal to the marginal social benefit. D) impose a tax equal to the marginal external benefit.
Refer to Figure 13-1. Ceteris paribus, a decrease in firms' expectations of the future profitability of investment spending would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
Refer to Figure 4-3. If the market price is $2.50, what is Kendra's consumer surplus?
A) $9.00 B) $7.50 C) $1.50 D) $0
An example of an externally generated business cycle is the war-induced theory
Indicate whether the statement is true or false