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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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
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