Economists exclude many interesting economic structures and activities from their models. What they focus on is
a. the real world as they see it
b. comparisons between the real world and their models
c. understanding how their models work and the outcomes they generate
d. the relationship between the physical economic reality and money
e. the production of real goods and how they are traded
C
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The only variable that can affect a movement along the demand curve is
A) income levels. B) the price of the good itself. C) the number of buyers. D) the number of substitutes.
The objective of bank management is to
A. maximize stockholders’ profits by making risky investments and giving loans to borrowers who will pay the highest interest rates. B. refuse to make risky loans and make loans only to the safest borrowers. C. invest in the U.S. government securities and make loans only to established businesses. D. strike the appropriate balance between the attraction of bank profits and the need for bank safety.