In which of the following cases is the assumption most reasonable?
ATo address the impact of money growth on inflation, an economist assumes that money is strictly coins.
BTo model the benefits of trade. an economist assumes that there are two people and two goods
CTo estimate the speed at which a beach ball falls, a physicist assumes that if falls in a vacuum.
DTo address the impact to taxes on income distribution an economist assumes that everyone earns the same income.
Correct answer
B. To model the benefits of trade. an economist assumes that there are two people and two goods
Explanation
The correct answer is To model the benefits of trade. an economist assumes that there are two people and two goods.