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Chapter 1 part two
What are the tools of economics?
Question | Answer |
---|---|
What are statistics? | the data that describes economic variables; also the techniques of analyzing, interpreting, and presenting data |
Define institutions? | decision-making units, established practices, or laws exp. Banking system, labor unions, legal principle of private property ownership etc. |
What is another helpful economic tool? | History or economic history |
What are important organizations customs, or patterns of behavior in a society? | Institutions |
What is an economic concept? | a word or phrase that conveys an economic idea |
What is the most important theoretical tool of economics? | Economic Models |
What is an economic model? | a simplified representation of the cause-and-effect relationships in a particular situation. Models may be in verbal, graphic, or equation form. |
What is a variable? | a quantity- such as number of workers, amount of carbon dioxide, or interest rate- whose values changes in relationship to changers in the values of other associated items. |
What type of models do economist often test their hypotheses with? | Mathematical, graphs, or stated in words |