An economic model can be described as
a. an abstract representation of reality
b. a detailed description of some economic phenomenon
c. something that is often more complex than the real-world phenomenon it represents
d. a vehicle for making positive economic statements
e. a vehicle for making normative economic statements
A
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According to the Invisible Hand Theorem, when competitive markets are used to allocate resources
a. no further gains from trade can be created. b. selfish behavior will cause socially undesirable outcomes. c. the resulting distribution of income will be fair and equitable. d. each good's price will equal the value of the labor used in its production.
Use the figure below to answer the following question:PriceQuantity Supplied$101089684726Over the $10 to $8 price range, the price elasticity of supply is
A. greater than 1. B. 1. C. less than 1. D. zero.
In 2006, before the start of the recession, the employment-population ratio was 63.4 percent. In August 2015, more than six years after the end of the recession, the ratio
A) was still 50 percent lower than the ratio in 2006. B) had increased to 72.3 percent. C) was still only 59.4 percent. D) was back to its 2006 level.
In the short-run, a firm's decision to shut-down should not take into consideration
a. Avoidable costs b. Variable costs c. Fixed costs d. Marginal costs