An appropriate test of the effectiveness of an economic model is
A) the number of variables contained within the model.
B) the model's ability to predict future economic activity.
C) the number of economists who have worked on the model.
D) the number of assumptions which the economist has made.
B
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The efforts of nations to influence exchange rates are known as
A) open market operations. B) establishing terms of trade. C) foreign exchange market intervention. D) rate discrimination.
Which of the following statements is correct?
a. Growth of productivity is the main determinant of growth in living standards. b. Common knowledge and proprietary technology are both important for the economy's production of goods and services. c. The terms capital and physical capital refer to the same thing. d. All of the above are correct.