Einstein was quoted saying "Everything should be made as simple as possible, but not simpler." When it comes to economic models thismeans thatO models shouldn't be too simpleO All of the three other options are correctOmodels should have a level of abstraction appropriate to the topic investigatedO models shouldn't be too complex

Introduction: Einstein was implying that while it is preferable to make even complicated things as…

Einstein was quoted saying "Everything should be made as simple as possible, but not simpler." When it comes to economic models this means that O models shouldn't be too simple O Al of the three other options are correct Omodels should have a level of abstraction appropriate to the topic investigated O models shouldn't be too complex

Einstein was quoted saying "Everything should be made as simple as possible, but not simpler." When it comes to economic models this means that O models shouldn't be too simple O Al of the three other options are correct Omodels should have a level of abstraction appropriate to the topic investigated O models shouldn't be too complex

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter1: The Role And Method Of Economics

Section: Chapter Questions

Problem 4P

See similar textbooks

Similar questions

What is the difference between a positive and a normative statement?
Explain the difference(s) between an economic and an econometric model . Write down examples for each model by using the variables that is decided for your project .
Define the concept of economic models
Why do you think economic models are important in econometric? Explain.
Why is it important for us to use models when studying economics?
Which of the following statements about economic models is correct? a) models are built to mirror exact reality b) models are useful, but they should not be used for the purpose of improving public policies c) models seldom incorporate equations or diagrams d) economic models omit many details, therefore they allow us to see what is truly important
The South African Rand flactuates widly on a daily, weekly, monthly basis. Identify all the variables that would be used in an econometric equation that estimates the relationship between South african economic growth and exchange rates (dollar to rand). appraise each variable that is included in the model using economics theory and briefly discuss the tests used to ensure model is statistically sound.
Brinley says that "gas prices are rising because there aren't enough oil refineries." argues that "gas prices are rising because of the growing demand for gasoline fro and India." We can conclude that: Brinley's statement is positive; Katie's statement is normative. Both statements are positive. Brinley's statement is normative; Katie's statement is positive. Both statements are normative. Question 4