Is it possible to express an economic model in words without diagrams?
a. No, models can only be stated in diagrams.
b. No, the very definition of model requires mathematical form.
c. Yes, some of the simplest models are verbal statements.
d. Yes, although the best models always use diagrams.
e. Uncertain, economic theory has not answered this question yet.
c
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Which of the following statements is true?
A) At wages above the equilibrium wage rate, quantity supplied of labor exceeds the quantity demanded of labor. B) At wages below the equilibrium wage rate, quantity supplied of labor exceeds the quantity demanded of labor. C) At the equilibrium wage rate, quantity supplied of labor exceeds the quantity demanded of labor. D) At the equilibrium wage rate, quantity demanded of labor exceeds the quantity supplied of labor.
A carbon tax which is designed to reduce pollution is an example of a
A) noneffective incentive. B) command-and-control policy. C) market-based policy. D) government administrative rule.
________ examines whether one variable affects another by using data to build a model that explains the channels through which this variable affects the other
A) Indirect-model evidence B) Organizational-model evidence C) Reduced-form evidence D) Structural-model evidence
Suppose Chip's Chips produces bags of potato chips. An example of a fixed cost for this company would be:
A. a potato peeling machine. B. the factory building. C. the deep fryer. D. All of these are examples of fixed costs.