Economic models are only useful in analyzing government policy
A) True. Individuals are irrational and therefore economic models are useless.
B) False. Economic models can be used to predict individual and firm behavior.
C) True. Economists only model those questions for which they are hired.
D) False. Economic models are not even useful in analyzing government policy.
B
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The official measure of unemployment may underestimate actual unemployment because
a. people may lie when reporting they are looking for jobs b. the treatment of involuntary part-time workers and discouraged workers is misleading c. the population sample employed by the Labor Department is too small to be representative d. some individuals who should be receiving unemployment benefits do not receive them e. individuals who are unable to work are not included
Which of the following is a statement which describes how the world should be?
a. Positive statement b. Normative statement c. Cognitive statement d. Reflective statement
The concept of economic efficiency refers to the size of the "economic pie" whereas the concept of equality refers to how the "pie" is distributed
a. True b. False Indicate whether the statement is true or false
Assume the price of product Y (the quantity of which is on the vertical axis) is $15 and the price of product X (the quantity of which is on the horizontal axis) is $3. Also assume that money income is $60. The absolute value of the slope of the
resulting budget line is: A. 5. B. 1/5. C. 4. D. 20.