Multiple Choice
Which statement about economic models is not true?
A) Analytical models consist of a clear set of assumptions and conclusions that are drawn from them.
B) Economic models simplify reality because the economic reality is too complicated.
C) Economic models consist of exogenous variables which are the response to changes in endogenous variables.
D) Models are used in both theoretical and empirical work.
E) Economic models must be coherent to be effective.
Correct Answer:
Verified
Correct Answer:
Verified
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Q6: An endogenous variable<br>A) is the independent variable
Q7: Which is not a pillar of the
Q8: Normative economics is<br>A) the prescriptive part of
Q9: If one party can gain from a
Q11: What is the equilibrium wage?<br>A) 1<br>B) 2<br>C)
Q12: Pareto efficiency implies<br>A) everyone in the economy
Q13: What is the equilibrium level of employment?<br>A)
Q14: If the price of capital decreases,the labor
Q15: When wages increase,the scale effect implies employment