A major problem that may occur with models that predict the values of economic variables in the future is that
a. researchers are pessimistic about the future.
b. the model may fail to acknowledge that economic actors will change their behavior in response to changing situations.
c. the model may make predictions that conflict with widely held opinions.
d. no one cares about these predictions.
b
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When the demand for a good is inelastic, that good is likely to have:
A. many close complements. B. few close substitutes. C. few close complements. D. many close substitutes.
A variable measures
A) the degree to which something varies over time. B) something that always has the same value. C) something that can take on different values. D) factors that occur with high degrees of uncertainty.
Why might the official measure of civilian unemployment in the U.S. be an understatement of actual unemployment?
a. Because some workers become discouraged and no longer are actively seeking work. Thus they are not officially counted in the labor force, and consequently are not officially unemployed. b. Because the official measure of civilian unemployment fails to account for very high levels of unemployment among active-duty military personnel. c. Because the statistics count part-time employment as being no different from full-time employment, even though many part-time workers would prefer to be fully employed. d. Both a. and c. above are correct.
Figure 11-8
Given the average cost curve shown in Figure 11-8 for dry cleaning, where Q1 is the quantity demanded in a small town, and Q2 for a larger town, you would expect dry cleaning to be a monopoly
A. in a small town, but not a large one. B. in both large and small towns. C. in a large town, but not a small one. D. only if the process is patented.