An economic model is useful only if it:
a. contains no positive statements.
b. captures all the complexities of reality.
c. yields accurate predictions.
d. has both macro- and microeconomic applications.
c
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Jewelry manufacturers produce a range of products such as rings, necklaces, bracelets, and brooches. What fundamental economic question are they addressing by offering this range of items?
A) What to produce? B) Why produce a variety of items? C) Who to produce the items for? D) How to produce goods that consumers want?
When supply falls and demand remains the same, equilibrium price _______ and equilibrium quantity __________.
Fill in the blank(s) with the appropriate word(s).
According to economists, economic self-interest:
A. is a reality that underlies economic behavior. B. has the same meaning as selfishness. C. means that people never make wrong decisions. D. is usually self-defeating.
The cross price elasticity for peanut butter for a change in the price of jelly is likely to be
A. positive and less than 1. B. positive and greater than 1. C. zero. D. negative.