If an important assumption is omitted from an economic model,
A) the model's predictions will be accurate 50% of the time.
B) the model's predictions will be inaccurate.
C) the model will not predict anything.
D) the model will be rejected by other economists.
B
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The law which prohibits embezzlement of funds by employees or income tax evasion acts as a(n):
a. psychological constraint b. ethical constraint. c. organizational constraint. d. contractual constraint.
Which of the following would explain wage rigidities?
a. Inflexible long-term contracts b. Inflation c. The liquidity of financial assets d. The reluctance of firms to lay off workers e. High worker productivity
If the reserve ratio is 20 percent, then $100 of new reserves can generate
a. $60 of new money in the economy. b. $250 of new money in the economy. c. $500 of new money in the economy. d. $2,000 of new money in the economy.
As noted in the text, which of the following was used by Nintendo to control the video game market?
A.) A natural monopoly. B.) Economies of scale. C.) A government franchise. D.) Exclusive licensing