One problem with constructing a perfectly complete realistic economic model is that
A) it would be too simplistic to have any value.
B) it would be far too complicated to analyze.
C) it would not serve the needs of economists who builds that model.
D) None of the above is true.
Answer: B
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Consider a small open economy with desired national saving of Sd = 200 + 10,000rw and desired investment of Id = 1000 - 5000rw. If rw = 0.05, then net exports equal
A) 100. B) 50. C) -50. D) -100.
A consumer will continue to purchase items until the budget is exhausted and ________ ________ is equal
a. consumer surplus b. marginal utility c. marginal cost d. consumer deficit
After completing college, Mohamed spent three months looking for a job. During this period, Mohamed would be classified as
A. cyclically unemployed. B. frictionally unemployed. C. structurally unemployed. D. not in the labor force.
Which of the following is the best explanation of exports and imports in China and India?
A) Exports are heavily subsidized through government policy. B) Many barriers to imports exist. C) Exports and imports are tied together, with exports depending on imported inputs and technology. D) Imports are not important to either nation's economy.