Economic models are NOT used to
A) explain economic phenomena.
B) predict economic phenomena.
C) understand economic phenomena.
D) describe all economic phenomena in finest detail.
Answer: D
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Which of following is not a condition that must be met for a cartel to maximize its joint profits?
A) Total output by the cartel must be allocated among the member firms such that the individual firm's marginal costs are equal. B) The cartel must produce the level of output at which its marginal revenues and marginal costs are equal. C) The cartel must be operating in the inelastic portion of its demand curve. D) Each member firm must employ the least-cost method of production.
Savings deposits and time deposits are not included in M1 because these are not held by the nonbanking public
a. True b. False Indicate whether the statement is true or false
Political institutions are more likely to allow and encourage the emergence of good economic institutions and policies when
a. the top government executives have enough power to impose good economic arrangements on the nation. b. constitutional constraints prevent laws and regulations that weaken the rights of property owners, curtail voluntary exchange, and provide for decentralization of government. c. the elected executive and legislative branches have fewer constraints on what they can do, leaving them free to innovate and improve economic institutions. d. well organized interest groups exert a powerful influence on the political process.
In the equation of exchange, the nominal GDP is designated by:
A. PQ/M. B. MV/P. C. PQ. D. MV.