Models in economics

Question 1

What do you think are economic models

Answer 1

A simplification of the economic relationship to determine an economic theory

Question 2

Can models be projected mathematically

Answer 2

Yessssssssssssssssssss!

Question 3

Example of economic models

Answer 3

The demand of a product increases, the price of it will likely increase

Question 4

If I make a model based on an observation-what type of model is it?

Answer 4

Induction model

Question 5

Think of an example of an induction model?

Answer 5

If the demand for a product decreases, whilst the supply of a product increases, the price of the product should go down

Question 6

If I draw a conclusion from my induction model, it is called?

Answer 6

deduction!!!!!!!!!!!!

Question 7

Give an example of deduction

Answer 7

If the demand of an product decreases- the price of the product decreases

Question 8

If the dependent variable has not changed from my deduction- what is it called

Answer 8

ceteris Paribus

Question 9

Give an example of a ceteris paribus

Answer 9

anything?????

Question 10

What is a highly competitive market called

Hint: you are it!!

Answer 10

a Perfect competition

Question 11

In a highly competitive market, what are the consumers/producers called?

Answer 11

price takers