A model is defined as a:
a. description of all variables affecting a situation.
b. positive analysis of all variables affecting an event.
c. simplified description of reality to understand and predict an economic event.
d. prediction based on historical evidence.
c
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Allocative efficiency occurs only at that output where
A. the areas of consumer and producer surplus are equal. B. marginal benefit exceeds marginal cost by the greatest amount. C. the combined amounts of consumer surplus and producer surplus are maximized. D. consumer surplus exceeds producer surplus by the greatest amount.
If Guy Lafleur is taxed $100 on an income of $1,000 . Patrick Roy is taxed $200 on an income of $2,000 . and Ryan Walter is taxed $300 on an income of $3,000 . the tax system is
a. progressive b. poll c. regressive d. excise e. proportional
A monopoly price reflects a good's marginal utility
a. True b. False Indicate whether the statement is true or false
At a price of $5, Sam buys 10 units of a product; when the price increases to $6, Sam buys 8 units. Martha says Sam's demand has decreased. Is Martha correct?
A. Yes, Martha is correct. Sam's demand has decreased. B. No, Martha is incorrect. Sam's demand has increased. C. No, Martha is incorrect. Sam's quantity demanded has decreased, and his demand has not changed. D. No, Martha is incorrect. Sam's quantity demanded has increased, and his demand has increased.