During the 18th century classical was the mainstream school of economics.

In what ways do human decision making differ from rational conventional economic theory

What does Chang mean when he describes Neoclassical economics as being more "versatile" than other schools of economic thought? You may answer in a paragraph or two.

if economic theories are solidly based on relevant facts, then appropriate economic policy becomes obvious and uncontroversial. True False

Economic behavior is more complex than assumed by conventional economic theory. Political economy explains the functioning of government. Behavioral economics ties psychology into human behavior. Economists assume that individuals make rational decisions. However real people are more complex. Based on what you have learned in your assigned reading, answer the following questions in your initial post: What are the human behaviors economists should observe when creating economic models? Example: people tend to find solutions that are good enough, but not the best solutions. In your responses, comment on at least two of your peers' posts and share example of how non-rational human behavior can change an economic outcome.

what is The rule of assumptions in building economics models?

The methodology of ________ economics says that models should be based on predictions and not assumptions.

True/False A Well tested or widely accepted economic theory is often called an economic principle

According to the "Scientific Method," what is the economics profession expected to do? Multiple Choice Test various hypothesis and theories against the real world. Observe real world behavior and outcomes. Try to find the cause and effect of variables. All of the choices are correct.

Fill the correct term