Economic model building begins with the construction of greatly oversimplified "benchmark" models, which are brought closer to reality by gradually removing the simplifying assumptions
In this process, more and more ________ variables become ________. A) short-run, long-run
B) exogenous, endogenous
C) long-run, short-run
D) endogenous, exogenous
E) nominal, real
B
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Which of the following are motivations for those seeking redistributive transfers?
a. The creation of more income equality. b. To help out those who are less fortunate c. To create a more just economic system. d. a and b e. all of the above
When economies of scale exist, a decrease in the level of output will lead to:
a. a decrease in cost per unit. b. an increase in cost per unit. c. no change in cost per unit. d. an increase in total cost.
The author of the book An Inquiry into the Nature and Causes of the Wealth of Nations is
A. Adam Smith. B. Donald Trump. C. Janet Yellen. D. Thorstein Veblen.
Assume a country is in a fixed exchange rate regime. Now suppose that individuals expect that policy makers will devalue its currency. Explain the various actions that policy makers can choose in response to this expected devaluation
What will be an ideal response?