In an economic model, assumptions
A) must be applicable to all real-world situations.
B) must be eliminated before being used to make sure the model is realistic.
C) are not important in determining the usefulness of the model.
D) define the set of circumstances in which the model is most likely to be applicable in the real world.
Answer: D
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A central bank with a hierarchical mandate will seek ________ as a condition of pursuing other goals
A) stable inflation B) high employment C) moderate interest rates D) the approval of the legislature E) none of the above
Buyer Power Nora's Nicest Knick Knacks has sold a variety of products to hundreds of small retailers. Over time, she has added distributers who have a talent for finding more retailers for Nora. Now, over half of her sales go through just two of these
distributers. Rather than making periodic orders as stock gets low, these distributers make only a few large purchases each year. How can these aspects of her buyer relationships affect how much of the value she creates that she gets to capture?
From 2009 to 2013, the price level in the U.S. has increased by 8.3 percent. This implies that the price index in 2012 was: a. 108.3. b. 183
c. 100. d. 98.3. e. 92.7.
In every economic system, scarcity imposes limitations on
a. households, business firms, governments, and the nation as a whole b. households and business firms, but not the governments c. local and state governments, but not the federal government d. households and governments, but not business firms e. business firms, governments, and the nation as a whole