What distinguishes a deductive approach from an inductive approach to modeling?
A. Inductive modeling uses data, whereas deductive modeling does not.
B. The inductive approach does not have conclusions for viable policies, whereas the deductive approach does.
C. The deductive approach begins by looking at the data, whereas the inductive approach begins with the model.
D. An inductive approach begins by looking at the data, whereas a deductive approach develops the implications of a model first.
Answer: D
You might also like to view...
Economic profits differ from accounting profits because ________
A) the former is calculated by economists and the latter by accountants B) many firms own their own capital so accounting profits do not factor this cost C) most firms report economic profits once a year and accounting profits every pay period D) all of the above E) none of the above
Retail stores that dedicate one or more aisles to "seasonal" items are engaging in ________
A) just-in-time production B) production smoothing C) work in process D) first degree price discrimination
How has macro-policy changed since the 1970s? How have the views of economists on the trade-off between inflation and unemployment changed?
A fruit packing plant usually shuts down for three months each year. During that period, what happens to its costs?
a. Its fixed costs are greater than zero. b. Its variable costs are greater than zero. c. Its total costs are zero. d. Its fixed costs are zero.