To be useful, a model must
A) predict accurately all of the time.
B) predict more accurately than other models that have been developed.
C) have assumptions that have been verified by empirical testing.
D) explain and predict the behavior of every individual.
B
Economics
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Refer to Figure 8A.2. If the economy were saving at the rate s1
A) saving would equal depreciation at e1. B) the economy would grow until it reached e2. C) capital stock would increase until the economy reached K2. D) all of the above.
Economics
If a price decrease of a product significantly raises its revenues, then the absolute price elasticity of demand for that product must be
A. an example of unit elasticity. B. greater than one. C. less than one. D. equal to one.
Economics