To allow heuristic models to provide us with a better understanding of economic problems, it is important to:
A. increase the amount of vocabulary in your model.
B. empirically test your data.
C. always stick with the deductive method.
D. never bring mathematics into the model.
Answer: B
You might also like to view...
Monetarists view the use of monetary policy to fine-tune the economy as
A) unnecessary because the private sector is inherently stable. B) always inflationary. C) less predictable than fiscal policy. D) impossible because the Fed does not have the tools to control the money supply.
On a production possibilities frontier, the opportunity cost of one more unit of a commodity per time period is measured by the
a. monetary price of the commodity b. amount of the other commodity that must be sacrificed c. amount of unemployed resources that must be used d. amount of satisfaction it gives consumers e. amount of tax paid to government for production, sale, and use of the commodity
Consider the market for capital equipment. Suppose the market price of firms' output decreases. Holding all else constant, the equilibrium quantity of capital equipment will
a. increase. b. decrease. c. not change. d. It is not possible to determine what will happen to the equilibrium quantity of capital equipment.
If as the variable on the Y-axis rises the variable on the X-axis rises, the relationship between X and Y is said to be a positive relationship.
Answer the following statement true (T) or false (F)