ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
Bartleby Related Questions Icon

Related questions

Question

Why is it important for us to use models when studying economics?

Expert Solution
Check Mark
Step 1

In economics a Model is defined as a theoretical construct which represents the economic processes by using a set of variables and set of quantitative relationship between the variables.

So, a model is a mathematical framework which is usually constructed in order to illustrate a complex situation. So, that the users of these models can understand the situations prevailing in the economy in an effective manner.

Therefore the models are usually designed by the economists as they portrays the situation prevailing in the economy or in the market

Step 2

It important for us to use models when studying economics as

  1. Simplify the reality
  2. Guides our attention to certain topics
  3. They make us to understand the economic concepts in an easy and better manner.
  4. Save our time: as it becomes easy to understand the concept with the help of model
  5. Exact values can be derives with the help of models.
bartleby

Step by stepSolved in 3 steps

Blurred answer
Knowledge Booster
Background pattern image
Economics
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Text book image
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:9780190931919
Author:NEWNAN
Publisher:Oxford University Press
Text book image
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Text book image
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Text book image
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Text book image
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Text book image
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education