An economist at the University of Alaska at Anchorage has been asked to explain why the price
Question:
An economist at the University of Alaska at Anchorage has been asked to explain why the price of Alaskan crude oil has fallen recently. In order to develop a model, the professor should take which steps?
a. | Identify the problem, develop a model based on simplifying assumptions and test the model to formulate a conclusion. | |
b. | Gather data on crude oil prices and seemingly unrelated variables to look for associations, then formulate a hypothesis based on those unexpected associations. | |
c. | Ask people in Alaska why they are not purchasing oil. | |
d. | None of these. The oil industry is controlled by a cartel; therefore price changes in the industry cannot be explained using economic theories. |
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr