LS2 - Economics As A Social Chase Flashcards
1
Q
Theoretical Model
A
Based on theory
Explain economic phenomena
Simplifies complex economic phenomena
2
Q
Empirical Model
A
Based on data
Predicts economic phenomena
3
Q
Why Do Economists Develop Models?
A
To explain and predict economic phenomena/change because they can’t use scientific experiments.
4
Q
Ceteris Paribus
A
All other things being equal.
5
Q
Why Do Economists Use Ceteris Paribus?
A
There are too many factors that can impact economic activity.
