An economic model is:

A. a complete replication of a market or other economic institution that leaves nothing out.

B. a small plastic replication of a bank or stock market.

C. a simplified representation of an economic concept or institution.

D. always based on complex computer simulations.

E. only applied to large complex problems because the small problems are so simple that they don’t need models.

b) a student tests 100 students to determine whether other students on her campus prefer soda brand a or soda brand b and finds no evidence that preference for brand a is not 0.5. later, a marketing company tests all students on campus and finds no difference. choose the correct answer below.

Why has the free enterprise system been modified to include some government intervention?

On january 2, well co. purchased 10% of rea, inc.’s outstanding common shares for $400,000, which equaled the carrying amount and the fair value of the interest purchased in rea’s net assets. well did not elect the fair value option. because well is the largest single shareholder in rea, and well’s officers are a majority on rea’s board of directors, well exercises significant influence over rea. rea reported net income of $500,000 for the year and paid dividends of $150,000. in its december 31 balance sheet, what amount should well report as investment in rea?