An appropriate test of the effectiveness of an economic model is

A. the number of economists who have worked on the model.
B. the number of assumptions which the economist has made.
C. the model's ability to predict future economic activity.
D. the number of variables contained within the model.


Answer: C

Economics

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This graph depicts the demand for a normal good.



A shift from A to B in the graph shown might be caused by:
A. a decrease in the price of a substitute.
B. a decrease in the price of a complement.
C. an increase in the price of a complement.
D. an increase in the good's price.

Economics

If the capital stock decreases, then the economy will produce ____ output with the ____ amount of labor

a. same, same b. less, same c. more, same d. more, decreased

Economics

Draw a graph that illustrates X-inefficiency. Explain the concept of X-inefficiency using the graph

What will be an ideal response?

Economics

On average, people in low-income countries ________ than people in high-income countries

A) have a longer life expectancy B) are subject to a lower infant mortality rate C) are shorter D) are exposed to fewer severe diseases

Economics