A globe is a model. However, it lacks much of the detail that one would find on a map. Does that make the globe an inferior model? Why not?
What will be an ideal response?
No. The globe has a different purpose than a map. The details that are suppressed on a globe are simply not necessary for the objective that a globe was designed to serve. Including them would not enhance the power of the globe as a model but actually might get in the way.
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As a currency appreciates:
A) exports increase and imports decrease. B) exports decrease and imports increase. C) exports increase and imports increase. D) exports decrease and imports decrease.
You value your favorite shirt at $110. Someone else values it at $150, and that person is willing to pay you $120 for your shirt. Would selling your shirt to this person for $120 be Pareto efficient?
A. Yes, because even though you gain from the trade and he loses, there is the potential for you to compensate him for his loss. B. No, the person paid you $120 for the shirt so his net benefit was $30, while your net benefit was $10. For this change to be Pareto efficient, each of you should have the same net benefit. C. Yes, because both of you are better off as a result of the trade. D. No, because you did not receive the maximum amount the other person would have been willing to pay for the shirt.