A theory or model is a simplification of reality, in much the same way that a road map shows only those features needed to get from one point to another.
a. true
b. false
Ans: a. true
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The Lost Decade refers to the years between approximately
A) 1975 and 1985. B) 1980 and 1990. C) 1987 and 1997. D) 1972 and 1980. E) 1960 and 1970.
Which of the following is true (assume the small country case)?
A) With a quota, an increase in demand leads to a higher price and more imports. B) With a tariff, an increase in demand leads to a higher price and more imports. C) With either a tariff or a quota, an increase in demand leads to a higher price and more imports. D) None of the above are true.
Which of the following pairs is most likely to represent complementary goods?
a. Hotels and campgrounds. b. Butter and margarine. c. Bacon and eggs. d. Miniature golf and bowling. e. Coffee and tea.
An increase in demand causes
a. a surplus b. excess supply c. an increase in supply d. an increase in equilibrium price and equilibrium quantity e. an improvement in technology