Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Chapter 2, Problem 1Q
To determine
Definition of the scientific method and to determine the process used by economists to pick models that work.
Expert Solution & Answer
Explanation of Solution
Every economist is required to do research and studies with an intent to develop models. The procedure used by economists as well as various researchers of other fields is known as the scientific method. It involves creating precise models about the research and theory that are done and using real data to test their validity. The scientific method is developed to execute the economic principle of Empiricism.
An economist decides to discard a model if it is inconsistent with the data found or does not satisfy the theory that the model is trying to prove. On the other hand, if the data coincides with the work done by the researcher, the model is accepted.
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Microeconomics (2nd Edition) (Pearson Series in Economics)
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