ECON 307- EXAM 1 Qs&As 2024/2025
Four ways a model can be represented - ANS-1. equations
2. graphs
3. words
4. data
What is an economic model? - ANS-It is a mathematical representation of a problem
Positive statements - ANS-claims that attempt to describe the world as it is
Normative stateme...
ECON 307- EXAM 1 Qs&As 2024/2025
Four ways a model can be represented - ANS-✔✔1. equations
2. graphs
3. words
4. data
What is an economic model? - ANS-✔✔It is a mathematical representation of a problem
Positive statements - ANS-✔✔claims that attempt to describe the world as it is
Normative statements - ANS-✔✔claims that attempt to prescribe how the world should be
Bar graph - ANS-✔✔A graph that uses horizontal or vertical bars to display data
Pie graph - ANS-✔✔A graph used to show part to whole.
Time graph - ANS-✔✔a graph representing a story that takes place over time
Scatter plot - ANS-✔✔A graph with points plotted to show a possible relationship between two sets of
data.
Reverse casualty - ANS-✔✔occurs when we mix up the direction of cause and effect
Omitted variable bias - ANS-✔✔one or more variables are left out of model
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