A simplifying assumption _____ while a critical assumption is _____.
a. is normative; positive
b. is only found in microeconomics; only found in macroeconomics
c. does not affect a model's conclusions; one that affects a model's conclusions
d. is one that eliminates scarcity from a model; one that simplifies the number of mathematical equations in a model
Answer: c. does not affect a model's conclusions; one that affects a model's conclusions
You might also like to view...
Network externalities refer to the situation where the usefulness of a product increases with the number of consumers who use it
Indicate whether the statement is true or false
In the open-economy macroeconomic model, if the supply of loanable funds increases, then the interest rate
a. and the real exchange rate increase. b. and the real exchange rate decrease. c. increases and the real exchange rate decreases. d. decreases and the real exchange rate increases.
All patent protected products would not have been developed without patent protection.
Answer the following statement true (T) or false (F)
In the above graphs, an inverse relationship is shown by
A. Graph A. B. Graph B. C. Graph C. D. Graph D.