The definition of an economic model.

Question

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Answer 1

Question

Chapter 2, Problem 1CQQ

To determine

The definition of an economic model.

Expert Solution & Answer

Answer to Problem 1CQQ

Option “c” is correct.

Explanation of Solution

Option (c):

The economic model can be defined as the simplified representation of some aspects of an economy or a simplified framework of a real, complex world. The economist uses the models for the generation of different economic ideas, new concepts, formulation of new principles, solving the questions in the economy, forecasting demand patterns, and so forth. Sometimes, economists use an existing model to analyze a real world problem or issues, but in other cases, they have to develop new models. Thus, option “c” is correct.

Option (a):

An economic model is not a mechanical machine that replicates the functioning of the economy but is just model of a real situation of economy that is made by an economist. Thus, option “a” is incorrect.

Option (b):

An economic model is not a fully-detailed, realistic description of the economy, as it is a representation of a real, complex situation. But, it can’t describe the reality precisely. Thus, option “b” is incorrect.

Option (d):

A model is not a computer program for predicting the future of the economy. It is a small, simplified version of different economic aspects. Thus, option “d” is incorrect.

Economics Concept Introduction

Concept introduction:

Economic model: Economic models are the simplified versions of reality used to analyze real-world economic situation and issues.

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02:56

Students have asked these similar questions

Sue is a sole proprietor of her own sewing business. Revenues are $150,000 per year and raw material (cloth, thread) costs are $130,000 per year. Sue pays herself a salary of $60,000 per year but gave up a job with a salary of $80,000 to run the business. ○ A. Her accounting profits are $0. Her economic profits are - $60,000. ○ B. Her accounting profits are $0. Her economic profits are - $40,000. ○ C. Her accounting profits are - $40,000. Her economic profits are - $60,000. ○ D. Her accounting profits are - $60,000. Her economic profits are -$40,000.

Select a number that describes the type of firm organization indicated. Descriptions of Firm Organizations: 1. has one owner-manager who is personally responsible for all aspects of the business, including its debts 2. one type of partner takes part in managing the firm and is personally liable for the firm's actions and debts, and the other type of partner takes no part in the management of the firm and risks only the money that they have invested 3. owners are not personally responsible for anything that is done in the name of the firm 4. owned by the government but is usually under the direction of a more or less independent, state-appointed board 5. established with the explicit objective of providing goods or services but only in a manner that just covers its costs 6. has two or more joint owners, each of whom is personally responsible for all of the partnership's debts Type of Firm Organization a. limited partnership b. single proprietorship c. corporation Correct Number

The table below provides the total revenues and costs for a small landscaping company in a recent year. Total Revenues ($) 250,000 Total Costs ($) - wages and salaries 100,000 -risk-free return of 2% on owner's capital of $25,000 500 -interest on bank loan 1,000 - cost of supplies 27,000 - depreciation of capital equipment 8,000 - additional wages the owner could have earned in next best alternative 30,000 -risk premium of 4% on owner's capital of $25,000 1,000 The economic profits for this firm are ○ A. $83,000. B. $82,500. OC. $114,000. OD. $83,500. ○ E. $112,500.

Answer 2

Question

Chapter 2, Problem 1CQQ

To determine

The definition of an economic model.

Expert Solution & Answer

Answer to Problem 1CQQ

Option “c” is correct.

Explanation of Solution

Option (c):

The economic model can be defined as the simplified representation of some aspects of an economy or a simplified framework of a real, complex world. The economist uses the models for the generation of different economic ideas, new concepts, formulation of new principles, solving the questions in the economy, forecasting demand patterns, and so forth. Sometimes, economists use an existing model to analyze a real world problem or issues, but in other cases, they have to develop new models. Thus, option “c” is correct.

Option (a):

An economic model is not a mechanical machine that replicates the functioning of the economy but is just model of a real situation of economy that is made by an economist. Thus, option “a” is incorrect.

Option (b):

An economic model is not a fully-detailed, realistic description of the economy, as it is a representation of a real, complex situation. But, it can’t describe the reality precisely. Thus, option “b” is incorrect.

Option (d):

A model is not a computer program for predicting the future of the economy. It is a small, simplified version of different economic aspects. Thus, option “d” is incorrect.

Economics Concept Introduction

Concept introduction:

Economic model: Economic models are the simplified versions of reality used to analyze real-world economic situation and issues.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

02:56

Answer 3

Question

Chapter 2, Problem 1CQQ

To determine

The definition of an economic model.

Expert Solution & Answer

Answer to Problem 1CQQ

Option “c” is correct.

Explanation of Solution

Option (c):

The economic model can be defined as the simplified representation of some aspects of an economy or a simplified framework of a real, complex world. The economist uses the models for the generation of different economic ideas, new concepts, formulation of new principles, solving the questions in the economy, forecasting demand patterns, and so forth. Sometimes, economists use an existing model to analyze a real world problem or issues, but in other cases, they have to develop new models. Thus, option “c” is correct.

Option (a):

An economic model is not a mechanical machine that replicates the functioning of the economy but is just model of a real situation of economy that is made by an economist. Thus, option “a” is incorrect.

Option (b):

An economic model is not a fully-detailed, realistic description of the economy, as it is a representation of a real, complex situation. But, it can’t describe the reality precisely. Thus, option “b” is incorrect.

Option (d):

A model is not a computer program for predicting the future of the economy. It is a small, simplified version of different economic aspects. Thus, option “d” is incorrect.

Economics Concept Introduction

Concept introduction:

Economic model: Economic models are the simplified versions of reality used to analyze real-world economic situation and issues.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

02:56

Answer 4

Question

Chapter 2, Problem 1CQQ

To determine

The definition of an economic model.

Expert Solution & Answer

Answer to Problem 1CQQ

Option “c” is correct.

Explanation of Solution

Option (c):

The economic model can be defined as the simplified representation of some aspects of an economy or a simplified framework of a real, complex world. The economist uses the models for the generation of different economic ideas, new concepts, formulation of new principles, solving the questions in the economy, forecasting demand patterns, and so forth. Sometimes, economists use an existing model to analyze a real world problem or issues, but in other cases, they have to develop new models. Thus, option “c” is correct.

Option (a):

An economic model is not a mechanical machine that replicates the functioning of the economy but is just model of a real situation of economy that is made by an economist. Thus, option “a” is incorrect.

Option (b):

An economic model is not a fully-detailed, realistic description of the economy, as it is a representation of a real, complex situation. But, it can’t describe the reality precisely. Thus, option “b” is incorrect.

Option (d):

A model is not a computer program for predicting the future of the economy. It is a small, simplified version of different economic aspects. Thus, option “d” is incorrect.

Economics Concept Introduction

Concept introduction:

Economic model: Economic models are the simplified versions of reality used to analyze real-world economic situation and issues.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

02:56

Answer 5

Chapter 2, Problem 1CQQ

To determine

The definition of an economic model.

Expert Solution & Answer

Answer to Problem 1CQQ

Option “c” is correct.

Explanation of Solution

Option (c):

The economic model can be defined as the simplified representation of some aspects of an economy or a simplified framework of a real, complex world. The economist uses the models for the generation of different economic ideas, new concepts, formulation of new principles, solving the questions in the economy, forecasting demand patterns, and so forth. Sometimes, economists use an existing model to analyze a real world problem or issues, but in other cases, they have to develop new models. Thus, option “c” is correct.

Option (a):

An economic model is not a mechanical machine that replicates the functioning of the economy but is just model of a real situation of economy that is made by an economist. Thus, option “a” is incorrect.

Option (b):

An economic model is not a fully-detailed, realistic description of the economy, as it is a representation of a real, complex situation. But, it can’t describe the reality precisely. Thus, option “b” is incorrect.

Option (d):

A model is not a computer program for predicting the future of the economy. It is a small, simplified version of different economic aspects. Thus, option “d” is incorrect.

Economics Concept Introduction

Concept introduction:

Economic model: Economic models are the simplified versions of reality used to analyze real-world economic situation and issues.

Answer 6

Chapter 2, Problem 1CQQ

To determine

The definition of an economic model.

Expert Solution & Answer

Answer to Problem 1CQQ

Option “c” is correct.

Explanation of Solution

Option (c):

The economic model can be defined as the simplified representation of some aspects of an economy or a simplified framework of a real, complex world. The economist uses the models for the generation of different economic ideas, new concepts, formulation of new principles, solving the questions in the economy, forecasting demand patterns, and so forth. Sometimes, economists use an existing model to analyze a real world problem or issues, but in other cases, they have to develop new models. Thus, option “c” is correct.

Option (a):

An economic model is not a mechanical machine that replicates the functioning of the economy but is just model of a real situation of economy that is made by an economist. Thus, option “a” is incorrect.

Option (b):

An economic model is not a fully-detailed, realistic description of the economy, as it is a representation of a real, complex situation. But, it can’t describe the reality precisely. Thus, option “b” is incorrect.

Option (d):

A model is not a computer program for predicting the future of the economy. It is a small, simplified version of different economic aspects. Thus, option “d” is incorrect.

Economics Concept Introduction

Concept introduction:

Economic model: Economic models are the simplified versions of reality used to analyze real-world economic situation and issues.

Answer 7

Chapter 2, Problem 1CQQ

To determine

The definition of an economic model.

Answer 8

Expert Solution & Answer

Answer to Problem 1CQQ

Option “c” is correct.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Option (c):

The economic model can be defined as the simplified representation of some aspects of an economy or a simplified framework of a real, complex world. The economist uses the models for the generation of different economic ideas, new concepts, formulation of new principles, solving the questions in the economy, forecasting demand patterns, and so forth. Sometimes, economists use an existing model to analyze a real world problem or issues, but in other cases, they have to develop new models. Thus, option “c” is correct.

Option (a):

An economic model is not a mechanical machine that replicates the functioning of the economy but is just model of a real situation of economy that is made by an economist. Thus, option “a” is incorrect.

Option (b):

An economic model is not a fully-detailed, realistic description of the economy, as it is a representation of a real, complex situation. But, it can’t describe the reality precisely. Thus, option “b” is incorrect.

Option (d):

A model is not a computer program for predicting the future of the economy. It is a small, simplified version of different economic aspects. Thus, option “d” is incorrect.