Economists build economic models by
a. generating data.
b. conducting controlled experiments in a lab.
c. making assumptions.
d. reviewing statistical forecasts.
c
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Although the Federal Reserve had traditionally made discount loans only to ________, in response to the financial crisis in 2008 the Fed made primary dealers eligible for discount loans as well
A) commercial banks B) investment banks C) government agencies D) mortgage lenders
All other things constant, goods will have more __________ demand if their price uses up a __________ proportion of a consumer's budget
a. price-elastic; greater b. unit-elastic; smaller c. price-elastic; smaller d. price-inelastic; greater e. stable; greater
Which of the following changes would not lead to a shift in Canada's production possibilities curve?
a. the introduction and use in Canada of more advanced technology b. a substantial emigration of Canadian workers to the U.S. c. a prolonged summer drought in Canada's Prairie Provinces that destroys 18% of Canada's wheat harvest d. a sharp increase in the number of Canadians earning advanced degrees in education, e.g., BA's, BS's, MD's and PhD's e. a change in the composition of Canada's output
Sport Tee Corporation manufactures T-shirts bearing the logos of professional football teams. The wholesale market for sport T-shirts is perfectly competitive. The manager forecasts the wholesale price of T-shirts next year to be $7.00. The firm's estimated marginal cost isSMC = 12 ? 0.005Q + 0.0000008Q2where Q is the number of T-shirts produced and sold each month. Sport Tee Corporation will have a fixed cost of $2,000 per month. Average variable cost at Sport Tee is
A. 12Q ? 0.0025Q2 + 0.000000266Q3 B. 12 ? 0.01Q + 0.0000024Q2 C. 12 ? 0.0025Q + 0.000000266Q2 D. 12 ? 0.0001Q + 0.000001Q2 E. none of the above