A model or theory in economics is:
A) based mostly on value judgments.
B) built using relevant observations, assumptions, and abstractions.
C) only useful if it correctly portrays the real world and its complexities.
D) useful only if it is based on normative economic statements.
Ans: B) built using relevant observations, assumptions, and abstractions.
Economics
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Sally derives utility from consuming apples and tacos as shown in the table above. Apples cost $1 each and tacos cost $2 each. If Sally's income is $9, she will consume
A) 5 apples and 2 tacos. B) 3 apples and 3 tacos. C) 1 apple and 4 tacos. D) no apples and 4 1/2 tacos.
Economics
If a market is shared equally by 200 firms the Herfindahl-Hirschman Index is
A) 12.5. B) 25. C) 50. D) 200.
Economics