An economic model is defined as:
A. a value judgment.
B. a presentation of all possible relevant real-world variables.
C. a simplified representation of the way in which facts are related.
D. data adjusted for irrational actions.
Answer: C
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All of the following are true of the labor-supply and labor-demand curves intersection except they:
A. only intersect once. B. intersect at the equilibrium wage. C. intersect at the profit-maximizing quantity for the firms in the market. D. intersect at the revenue-maximizing quantity for the firms in the market.
If the demand for a good increases because consumer income increases, the good is a(n):
a. inferior good. b. normal good. c. necessity good. d. luxury good.
Bank accounts and bonds are examples of money-fixed assets
a. True b. False Indicate whether the statement is true or false
In the aggregate demand-aggregate supply model in the short run, a decrease in the money supply is likely to cause a(n) _____
Fill in the blank(s) with the appropriate word(s).