Economic models can help us understand reality only when they include all details of the economy
a. True
b. False
Indicate whether the statement is true or false
False
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What is the present value of $960 in one year if the current rate of interest is 6 percent?
A) $676.76 B) $905.66 C) $1,017.60 D) $1,449.46
Explain why a firm maximizes its profits by producing the level of output at which marginal revenue equals marginal costs
What will be an ideal response?
To estimate the value of a statistical life, economists sometimes look at the decisions that people make that will change their risk of death. For example, people may accept a more dangerous job in exchange for higher pay. This method of determining the value of a statistical life is known as
A. the trade-off method. B. the actuarial method. C. revealed preference. D. stated preference.
The following graph is the production possibility curve for a three-person economy, with workers Janna, Drew, and Karl.
Who has the highest opportunity cost of producing rice?
A. Kari B. Janna C. Janna and Drew D. Drew