Macroeconomics
13th Edition
ISBN: 9781337617390
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 20, Problem 14QP
To determine
Determine an observation, identify a question based on observation, develop a theory to answer the question, and identify two predictions based on the theory.
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Elements of Mathematical Economics
11) Model A is superior to model B if
A) it contains more real world detail than model B.
B) it contains fewer unrealistic assumptions than model B.
C) its predictions correspond more closely to the facts than the predictions of model B.
D) it is preferred by a majority of researchers in a public opinion poll.
E) it is scientifically "elegant."
12) In choosing among alternative models, economists generally have the strongest preference for models that
A) have assumptions that are close to exact replicas of reality.
B) are detailed and complex, with every available fact and figure included.
C) have few assumptions and are as simple as possible, even if they cannot predict very well.
D) predict better than any other that is available.
E) have assumptions that are complicated.
13) A normative statement is a statement regarding
A) what is usually the case.
B) the assumptions of an economic model.
C) what ought to be.
D)…
Question 5
Explain the difference between the terms 'hypotheses" and 'theories'.
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