Multiple Choice
Economists make simplifying assumptions to
A) understand extremely complex phenomenon.
B) build a model that is as close to the real world as possible.
C) focus on the variables that are important to an economic theory.
D) A and C
Correct Answer:
Verified
Correct Answer:
Verified
Q29: Which of the following is NOT considered
Q30: Which of the following situations represents a
Q31: The price of a good is<br>A) always
Q32: Which of the following is a fundamental
Q33: Which of the following is an example
Q35: Economic models are most often tested<br>A) using
Q36: A country produces cars and books.All of
Q37: A good economic model has<br>A) testable predictions.<br>B)
Q38: The maximizing behavior of individuals and firms
Q39: Microeconomics studies the allocation of<br>A) decision makers.<br>B)