In constructing models, economists
a. leave out equations, since equations and models tend to contradict one another.
b. ignore the long run, since models are useful only for short-run analysis.
c. sometimes make assumptions that are contrary to features of the real world.
d. try to include every feature of the economy.
c
Economics
You might also like to view...
When price is greater than the market equilibrium price, a shortage is created
Indicate whether the statement is true or false
Economics
Clifford lives by the motto "Eat drink and be merry today, for tomorrow doesn't matter." If today's consumption is represented by "x" and tomorrow's consumption is represented by "y", then which of the following best represents Clifford's utility function?
A) U = x - y B) U = x/y C) U = x D) U = y
Economics