EBK MICROECONOMICS
2nd Edition
ISBN: 9780134524931
Author: List
Publisher: YUZU
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Question
Chapter 2, Problem 9P
(a)
To determine
The Correctness of the model.
(b)
To determine
Appropriate method to test the model.
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Students have asked these similar questions
Which statement is not true about the use of models in economics?
1. They are based on simplifying assumptions.
2. They are used to forecast economic variaables such as GDP growth.
3. They must closely mirror real life in order to be informative.
4. There are often multiple models that seek to explain the same economic phenomena.
5. They are usually represented graphically
Econometric models have nothing to do with the reality." What say you?
The methodology of ________ economics says that models should be based on predictions and not assumptions.
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Similar questions
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- 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 .arrow_forwardI need help with this question! How can I draw a model for it?arrow_forwardWhich of the following is not correct about most economic models? A) They are composed of equations and diagrams. B) They contribute very little to economist's understanding. C) They omit many features of the real world economy. D) In constructing models, economists make assumptions.arrow_forward
- Suppose, as an economist, you are ask to analyze an issue unlike anything you have ever done before. Also, you do not have a specific model for analyzing that issue. What should you do? Hint: what would a carpenter do in a similar situation?arrow_forwardWhy do you think economic models are important in econometric?arrow_forwardWhich 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 importantarrow_forward
- Explain economic modelsarrow_forwardSuppose, as an economist, you are asked to analyze an issue unlike anything you have ever done before. Also, suppose you do not have a specific model for analyzing that issue. What should you do? Hint: What would a carpenter do in a similar situation?arrow_forward
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