Microeconomic models are used to
A) make predictions.
B) explain real-life phenomena.
C) evaluate policy alternatives.
D) All of the above.
D
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Suppose the equilibrium price and quantity of ketchup fall. The most likely explanation for these changes is:
A. an increase in the supply of ketchup. B. a decrease in the demand for ketchup. C. an increase in the demand for ketchup. D. a decrease in the supply of ketchup.
Discuss some of the fundamental differences between microeconomics and macroeconomics.
What will be an ideal response?
If the economy is not in a long-run equilibrium and other things are equal, then prices will eventually adjust to bring the economy to a long-run equilibrium.
Answer the following statement true (T) or false (F)
Suppose that a bank has $250 in vault cash, $750 in deposits at the Federal Reserve, $9,000 of loans, and deposits of $10,000. What is the bank's reserve ratio?
a) 2.5% b) 10% c) 33% d) 90%