An economic model:
A. should include all possible details.
B. always accurately predict cause and effect.
C. should make clear assumptions.
D. will never use simplifying assumptions.
C. should make clear assumptions.
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The difference between average total costs and average variable costs is:
A. marginal cost. B. fixed cost. C. average fixed cost. D. None of the statements is correct.
Exhibit 21-5 International currency markets
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Exhibit 21-5 displays the international currency market for yen in terms of dollars and dollars in terms of yen. The supply curve in graph 15-5(A) is determined by:
A. U.S. citizens attempting to purchase Japanese-made goods. B. Japanese attempting to purchase U.S.-made goods. C. U.S. businesses attempting to sell to the Japanese. D. Japanese businesses attempting to sell to the U.S.
Economic growth will
A. be a movement from inside the productions possibilities curve to the curve itself. B. shift the production possibilities curve inward. C. shift the production possibilities curve outward. D. shift along the production possibilities curve toward the X-axis.
The cross-price elasticity of demand measures the
A) percentage change in the quantity demanded of one good in one location divided by the price of the same good in another location. B) absolute change in the quantity demanded of one good divided by the absolute change in the price of another good. C) percentage change in the quantity demanded of one good divided by the percentage change in the price of another good. D) percentage change in the price of one good divided by the percentage change in the quantity demanded of another good.