The definition of an economic model.

Question

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Answer 1

Question

Chapter 2, Problem 1QCMC

To determine

The definition of an economic model.

Expert Solution & Answer

Answer to Problem 1QCMC

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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Students have asked these similar questions

3. Consider the market for paper. The process of producing paper creates pollution. Assume that the marginal damage function for pollution is given by: MDF = 3E where damages are measured in dollars and E is the level of emissions. Assume further that the function describing the marginal abatement cost of emissions is given by MAC 120-E where benefits are measured in dollars and E is the level of emissions. a. Graph the marginal damage function (MDF) and the marginal abatement cost function (MAC). b. What is the unregulated level of emissions Eu? What is the social welfare of this emissions level? c. Assume an existing emission quota limits emissions to E = 60. Show on the graph why this policy is inefficient. What is the deadweight loss caused by this policy?

show written calculation for B

Problem 1: 1. If a stock is expected to pay an annual dividend of $20 forever, what is the approximate present value of the stock, given that the discount rate is 5%? 2. If a stock is expected to pay an annual dividend of $20 forever, what is the approximate present value of the stock, given that the discount rate is 8%? 3. If a stock is expected to pay an annual dividend of $20 this year, what is the approximate present value of the stock, given that the discount rate is 8% and dividends are expected to grow at a rate of 2% per year?

Answer 2

Question

Chapter 2, Problem 1QCMC

To determine

The definition of an economic model.

Expert Solution & Answer

Answer to Problem 1QCMC

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!

Answer 3

Question

Chapter 2, Problem 1QCMC

To determine

The definition of an economic model.

Expert Solution & Answer

Answer to Problem 1QCMC

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!

Answer 4

Question

Chapter 2, Problem 1QCMC

To determine

The definition of an economic model.

Expert Solution & Answer

Answer to Problem 1QCMC

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!

Answer 5

Chapter 2, Problem 1QCMC

To determine

The definition of an economic model.

Expert Solution & Answer

Answer to Problem 1QCMC

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 1QCMC

To determine

The definition of an economic model.

Expert Solution & Answer

Answer to Problem 1QCMC

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 1QCMC

To determine

The definition of an economic model.

Answer 8

Expert Solution & Answer

Answer to Problem 1QCMC

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.