In order to predict behavior, economic models must be realistic.
Answer the following statement true (T) or false (F)
False
Rationale: Economic models do not have to be realistic. Models that make certain assumptions may help us to predict behavior.
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An open-market sale
a. increases the number of dollars and the number of bonds in the hands of the public. b. increases the number of dollars in the hands of the public and decreases the number of bonds in the hands of the public. c. decreases the number of dollars and the number of bonds in the hands of the public. d. decreases the number of dollars in the hands of the public and increases the number of bonds in the hands of the public.
In the United States the difference between union and non-union wages
A) does not exist. B) currently averages about more than 100 percent. C) has been narrowing. D) tends to fall during a recession because union members typically have shorter-term contracts than do nonunion employees.