EC-1022 Definitions and key vocab

Question 1

Endogenous variables

Lecture 1

Answer 1

those which a model tries to explain

Question 2

Exogenous variables

Answer 2

those taken as a given within a model

Question 3

Normative economic analysis

Answer 3

approaches that look at what ‘should be’

Question 4

Positive economic analysis

Answer 4

approaches that focus on ‘what is’