Question: Why is it important for a good economic model to make clear assumptions?

Why is it important for a good economic model to make clear assumptions?

Step by Step Solution

★★★★★

3.44 Rating (179 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

A good model must make clear a... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Microeconomics Principles Questions!

Q:

Why is it important for a good economic model to predict cause and effect?

Q:

Why is it important for a company to have IT-performance-related controls over the acquisition of software, hardware and network technology?

Q:

Why is it important for a CPA to promote professional services in an ethical manner? Do you believe it would be ethical for a CPA to advertise professional services using testimonials and...

Q:

Which of the following is NOT an attribute of a good economic model? It is clear: It helps us better understand something important. I ' m choosing not to answer this question It is comprehensive: It...

Q:

Read the article:Zeng, T. (2016). Corporate Social Responsibility, Tax Aggressiveness, and Firm Market Value. Accounting Perspectives ,15(1), 7-30. doi:10.1111/1911-3838.12090 Does Corporate Social...

Q:

Consumer Choice and Behavioral Economics J.C. Penney Customers Didn't Buy into \"Everyday Low Prices\" In 2010, the J.C. Penney department store chain had nearly 600 \"sales,\" and it sold almost...

Q:

Which of the following statements is true? a The production possibilities model is an economic model that shows different combinations of two goods that society can efficiently produce using all of...

Q:

Which of the following statements is true? Group of answer choices A model should be as complex as possible to accomplish its purpose (to explain or predict an economic phenomenon, such as inflation...

Q:

1. Is decision-making a function of management? 2. Why do we make decisions as managers? - 3. What's the difference between programmed and non-programmed decisions? Do managers make more programmed...

Q:

Consider a version of the economic model with the associated assumptions of Chapter 6, in which the money growth rate is a random variable. Let the probability be 4/5 that z t = 1 and the probability...

Q:

Pop Top Corp. purchases rolls of aluminum and then molds the rolls into cans. They use 50 rolls of aluminum per month in their processes. The rolls are purchased at $36.00 per roll and the annual...

Q:

Tiff any Company issued 10,000 shares of $0.01 par-value common stock in exchange for a building. The market value of the stock at the date of the exchange was $40 per share. Make the necessary...

Q:

During periods of high inflation, stores that publish catalogs find it necessary to re _ _ _ _ _ frequently than they did before. This is an example of _ _ _ _ _ costs. less; menu more; unit - of -...

Q:

Why is a system of control price typically associated with rationing of demand?

Q:

Its Friday night. You already have a ticket to a concert, which cost you $30. A friend invites you to go out for a game of paintball instead. Admission would cost you $25, and you think youd get $25...

Q:

Suppose you have two job offers and are considering the trade-offs between them. Job A pays $45,000 per year and includes health insurance and two weeks of paid vacation. Job B pays $30,000 per year...

Q:

Your former neighbor gave you his lawnmower when he moved. You are thinking of using this gift to mow lawns in your neighborhood this summer for extra cash. As you think about what to charge your...

Q:

Calculating the Fixed Overhead Spending and Volume Variances Standish Company manufactures consumer products and provided the following information for the month of February: Units produced 131,100...

Q:

Bow Darling is an eCommerce site that sells children's hair bows. The bows are handmade and sell for premium prices. The company is owned by Marsha Darling, who started the business 8 years ago as a...

Q:

Tobins Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for November: Units 12" Pizza 16" Pizza Budgeted...