A useful economic model
A. deals only with possibilities that actually occurred.
B. makes only realistic assumptions.
C. may make some unrealistic assumptions in order to simplify a complex reality.
D. will avoid conclusions that have public policy implications, because economists do not make value judgments.
Answer: C
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Since 1925, the longest recession in the United States lasted:
A. 120 months. B. 43 months. C. 60 months. D. 21 months.
The Philippines and Vietnam have roughly the same size population. Suppose the GDP of the Philippines is $1,000 billion and the GDP of Vietnam is $10,000 billion. You should conclude
A) it is not possible to make a good comparison of the economic well being of a typical individual in the 2 countries without additional information. B) a typical person in Vietnam is 10 times as well off as the typical person in the Philippines. C) a typical person in Vietnam is more than 10 times as well off as the typical person in the Philippines. D) a typical person in Vietnam is less than 10 times as well off as the typical person in the Philippines.
According to Thomas Malthus, the human race is doomed to suffer repeated famines and wars because
a. population and food supply both increase arithmetically b. population and food supply both increase geometrically c. population increases arithmetically while food supply increases geometrically d. population increases geometrically while food supply increases arithmetically e. population increases exponentially while food supply increases geometrically
A deposit in a financial institution that requires notice of intent to withdraw is a
A. time deposit. B. money market deposit account. C. savings deposit. D. security deposit.