Abstraction is used in economics to omit unnecessary details and focus on the essence of the problem being studied.
Answer the following statement true (T) or false (F)
True
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What causes employers or employees to behave opportunistically?
Which statement about human capital is false?
A. Workers accumulate human capital during formal education and through life experiences. B. Human capital gives firms a way to differentiate between workers. C. Human capital has a low rate of return. D. Human capital tends to be an important determinant of one's wages. E. There is more human capital in the United States now than there was 100 years ago.
Deflation generally occurs when which of the following occurs?
A) the consumer price index is greater than the GDP deflator B) the consumer price index decreases C) the rate of inflation falls, for example, from 4% to 2% D) nominal GDP does not change
The distribution of money income can be represented graphically using
A) supply and demand diagrams. B) a Lorenz curve. C) a Keynesian curve. D) a Distribution curve.