Intro to Econ Microeconomics (ECON-1102-005) Assignment #1 (10%), Due January 26, 2024, 5 PM. 15. Which statement best describes the relationship between inflation and unemployment? a. In the short run, reducing inflation is associated with falling unemployment. b. In the short run, reducing inflation is associated with rising unemployment. c. In the long run, reducing inflation is associated with falling unemployment. d. In the long run, reducing inflation is associated with rising unemployment. 16. Why do economists make assumptions? a. to diminish the chance of wrong answers b. to make the world easier to understand c. because all scientists make assumptions d. to make certain that all necessary variables are included 17. Which statement best describes economic models? a. Economic models attempt to mirror reality exactly. b. Economic models are useful but should not be used for policymaking. . Economic models omit many details to allow us to see what is truly important. d. Economic models cannot be used in the real world because they omit details. 18. In the goods and services market, how do houscholds and firms interact? a. They are both buyers. b. Households are sellers and firms are buyers. . Households are buyers and firms are sellers. d. They are both sellers. 19. What does a point on a country's production possibilities frontier represent? a. a combination of two goods that an economy will never be able to produce b. a combination of two goods that an economy can produce using all available resources and technology . a combination of two goods that an economy can produce using some of its resources and technology d. a combination of two goods that an economy may be able to produce sometime in the future with additional resources and technology 20. What are the roles of economists when trying to explain or to improve the world? a. In trying to explain the world, economists are policy advisers; in trying to improve the world, they are scientists. b. In trying to explain the world, economists are mathematicians; in trying to improve the world, they are policymakers. c. In trying to explain the world, economists are mathematicians; in trying to improve the world, they are scientists. d. In trying to explain the world, economists are scientists; in trying to improve the world, they are policy advisers. 21. When economists are speaking as policy advisors, which statements are they more likely to use? a. normative statements b. positive statements c. objective statements d. descriptive statements Page 3