Which of the following best describes the difference(s) between a model and a theory?
a. A theory is a more abstract representation, while a model is more applied or empirical representation.
b. A model is a more abstract representation, while a theory is more applied or empirical representation.
c. Theories are used to test models.
d. Models have been proven, but theories are still being investigated.
a. A theory is a more abstract representation, while a model is more applied or empirical representation.
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The unreported or illegal production of goods and services in the economy that is not counted in GDP is termed:
a. money laundering. b. the underground economy. c. disposable personal income. d. indirect national income. e. unreported capital consumption.
In Exhibit 11-5, at what wage rate will the firms stop hiring these workers?
A. $25.00. B. $20.00. C. $15.00. D. $10.00.
An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply. B. increase in aggregate demand. C. increase in short-run aggregate supply. D. decrease in aggregate demand.
Many states had their own insurance fund to protect depositors. The critical problem with these state funds is:
A. they do not have regulators as knowledgeable as the regulators at FDIC. B. they are monopolies in their own state and extract extremely high prices for the insurance they provide. C. no state fund is large enough to withstand a run on all of the banks it insures. D. they are highly inefficient they cannot achieve the economies of scale a federal fund can achieve.