Chapter 1, Problem 8AA

To determine

To find the correct option that satisfies the sentence.

Answer to Problem 8AA

An economist might use an economic model to formulate a theory, or hypothesis, about some aspect of the economy.

Explanation of Solution

Economics is the study of human behavior which focuses on the judicious use of scarce resources to fulfill the unlimited wants of the people.

There is a scarcity of resources in every society. So, people should focus on judicious use of resources.

Economists discuss economic theory issues and problems based on particular assumptions about human behavior, which are different from the assumptions that an anthropologist or psychologist would use. A theory is a condensed account of how two or more variables interact with one another.