Every economic model should include money as a variable. This statement is
A) true, because every transaction in the economy uses money.
B) true, because the federal reserve is very important.
C) false, because some transactions in the economy are accomplished without money.
D) false, because a model can get unnecessarily complex if it includes money.
Question 2
Which of the following is an example of a normative statement?
A) A higher price for a good causes people to want to buy less of that good.
B) A lower price for a good causes people to want to buy more of that good.
C) To make the good available to more people, a lower price should be set.
D) If you consume this good, you will be better off.
Example of a patient statement.
The operon model, as proposed in 1961 by Jacob and Monod
Model of a complex systems
Economic objectives of firms
economic question
economic question