One reason why economists often use models in their analysis is that
A) a model helps us to understand, explain, and predict economic phenomena in the real world.
B) a model accurately pictures every detail of the real world economy.
C) a model relates to individual thought processes rather than behavior.
D) it is relatively easy to perfectly specify a model.
A
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A financial services company offers to pay you $1,000 a year for life in exchange for $20,000 today. What factors affect your decision to take this offer?
What will be an ideal response?
Discrimination raises the average wage of members of one group of workers in spite of laws that require equal pay for all workers
a. True b. False Indicate whether the statement is true or false
In the circular flow model, for every flow of goods, services, and resources there is a counter-flow of
a. more goods, services, and resources b. people from firms to households c. people from households to firms d. money e. land, labor, capital, and entrepreneurship
The large increase in oil prices in the 1970s was caused primarily by a(n)
a. increase in demand for oil. b. decrease in demand for oil. c. decrease in the supply of oil. d. increase in the supply of oil.