The more difficult the goal, the more likely military force is going to be needed to back up economic sanctions
Indicate whether the statement is true or false
TRUE
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Economic models are often based on assumptions because they:
A) help simplify complex real-world phenomena. B) help explain the past. C) help test models even when relevant data are unavailable. D) help predict the future with higher accuracy. A model is based on an assumption that an additional year of education increases a student's future wage by 20%.
A competitive price-searcher firm is currently producing 10 units of output. At this level of output the firm is charging a price equal to $10, has marginal revenue equal to $6, has marginal cost equal to $6, and has average total cost equal to $12 . From this information we can conclude that
a. the firm is currently maximizing its profit. b. the profits of the firm are positive. c. firms are likely to enter this market in the long run. d. the firm would earn more profit by expanding output
Consider the perfectly competitive firm in the above figure. What will the firm choose to do in the short-run and why?
A) shut down because the firm incurs an economic loss B) stay in business because the firm is making an economic profit C) stay in business because the firm's economic loss is less than fixed costs D) stay in business because it is making zero economic profit
The IS curve becomes steeper if there is __________ in the interest-sensitivity of __________ demand
A) an increase; money B) an increase; investment C) a decrease; money D) a decrease; investment