An assumption that affects a model in important ways is
a. a key step
b. a simplifying assumption
c. a bad assumption, one that should be avoided in economic theory
d. a critical assumption
e. one that should be replaced with empirical evidence
D
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Which of the following statements is true?
A) Black markets for currency are more likely to occur in countries with undervalued currencies than with overvalued currencies. B) Black markets for currency are more likely to occur in countries with convertible currencies than with non-convertible currencies. C) Black markets for currency are more likely to occur in countries with overvalued currencies than with undervalued currencies. D) Black markets for currency are equally likely to occur in countries with undervalued currencies or with overvalued currencies.
A monopoly firm is a price
a. taker and has no supply curve. b. maker and has no supply curve c. taker and has an upward-sloping supply curve. d. maker and has an upward-sloping supply curve.