Which of the following is true of an economic model?
a. It is a simplified representation of a situation that includes enough of the key features to be useful.
b. It is always based on a mathematical formula
c. It is a physical representation of a real world situation in a laboratory.
d. It is always named after the economist who devises it.
b
Economics
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The horizontal short-run aggregate supply curve
A) assumes that wages and all other input prices are constant. B) assumes that opportunity cost is constant. C) shows that real GDP can be increased only when prices increase. D) assumes that there is full employment in the economy.
Economics
Leontief's results were considered paradoxical because the United States was believed to be
A) technologically efficient relative to the rest of the world. B) capital abundant relative to the rest of the world. C) labor abundant relative to the rest of the world. D) All of the above.
Economics