Economic models are abstractions from reality

Indicate whether the statement is true or false

T

Economics

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The hedonic price method

a. is a direct method of estimating benefit b. relies on the theory that goods are valued for their attributes c. is a physical linkage approach d. is useful but not intuitive

Economics

A price equal to the free market equilibrium price is efficient because the willingness to pay by someone to consume an additional unit ________ the marginal cost to someone for producing that unit.

A. exceeds B. is less than C. equals D. None of these; efficiency is defined in terms of natural resources, not market equilibrium.

Economics