Every economic model should include money as a variable. This statement is
A) true, because every transaction in the economy uses money.
B) true, because the federal reserve is very important.
C) false, because some transactions in the economy are transacted without money.
D) false, because a model can get unnecessarily complex if it includes money.
D
You might also like to view...
Which of the following is TRUE regarding real GDP?
I. Real GDP is the value of the total production of the country's farms, factories, shops, and offices. II. Real GDP rises whenever inflation occurs. III. Real GDP does not measure all that is produced. A) I and II B) I and III C) II and III D) I, II and III
Which of the following is a question that an economist would use to break down a problem?
A. Will the average income per person for the society increase? B. Does the decision maker have a track record of being rational? C. Is there a scarce resource that will be allocated? D. How might one person feel about the solution to the problem?
In the 19th century hospitals had notorious reputations—questionable places to visit, risky places to stay. What advances changed all this?
a. Development of the germ theory of disease. b. Advances in medical technology. c. Availability of health insurance to pay the bills. d. All of the above.
A quota is
A) a tax imposed on imported goods. B) a legal limit on the amount of a good that can be produced by foreign owners of a firm located in a host country. C) a legal limit on the amount of a good that can be imported. D) an agreement between two countries in which the exporting country voluntarily agrees to limit its exports to the importing country.