A simplifying assumption is typically made so as to
A. divert attention from the real problem.
B. make things look better than they really are.
C. make a point clearer by stripping away excess detail.
D. make a point clearer by adding sufficient detail to get things precise.
Answer: C
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If the cross-price elasticity of demand between two goods is -1.2, then the two goods are:
A. elastically demanded. B. inferior. C. complements. D. substitutes.
The capital and financial account balance is equal to
A) the value of exports of U.S. capital goods minus the value of imports of capital goods into the United States. B) exports minus imports. C) foreign assets owned by the United States minus U.S. assets owned by foreigners. D) U.S. investment abroad minus foreign investment in the United States. E) foreign investment in the United States minus U.S. investment abroad.
A tariff
a. lowers the domestic price of the exported good below the world price. b. keeps the domestic price of the exported good the same as the world price. c. raises the domestic price of the imported good above the world price. d. lowers the domestic price of the imported good below the world price.
The Federal Open Market Committee (FOMC) serves as the fiscal agent for the U.S. government.
Answer the following statement true (T) or false (F)