Which of the following statements about economic models is TRUE?
A) The best economic models must be most complex.
B) A good model does not rely on any assumptions.
C) Every model is based on a set of assumptions.
D) Economic models are designed to explain what people need.
Answer: C
Economics
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The figure above shows the marginal social cost curve of generating electricity, the marginal private cost curve, and the demand curve
If the government imposes a pollution tax to achieve the efficient level of production, the tax equals ________ per kilowatt hour. A) 0¢ B) 7.5¢ C) 10¢ D) 15¢ E) 2.5¢
Economics
In the above figure, the distance between points T and U represents
A) an expansion. B) a trough. C) a peak. D) a recession.
Economics