The Standard Cobweb Model Makes Which Two Assumptions

question 21

Multiple Choice

The standard cobweb model makes which two assumptions?

• A) Workers are forward looking, and job adjustments take time.
• B) Workers are myopic, and job adjustments take time.
• C) Workers are forward looking, and job adjustments are instantaneous.
• D) Workers are myopic, and job adjustments are instantaneous.
• E) Workers are myopic, and retraining of one's skills happens instantaneously.

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Definitions:

Customer Account

An account maintained by a business for each customer to track transactions, balances, and other relevant information.

Supplier's Account

An account kept by a business to record transactions (like purchases and payments) related to a specific supplier.

Purchases Journal

A specialized accounting journal used to record all purchases of merchandise, inventory, and other supplies on credit.

Life Vests

Safety devices designed to keep an individual afloat in water and reduce the risk of drowning.