What are the 5 steps generally used by economists to develop a model?
What will be an ideal response?
1. Decide on the assumptions to be used in developing the model and decide which endogenous variables will be explained by the model and which exogenous variables will be taken as given.
2. Formulate a testable hypothesis.
3.Use economic data to test the hypothesis.
4. Revise the model if it fails to explain the economic data well.
5. Retain the revised model to help answer similar economic questions in the future.
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As an economic concept, scarcity applies to
A) both money and time. B) money but not time. C) time but not money. D) neither time nor money.
The supply of dollars in the foreign exchange market decreases and that means that the supply curve of dollars shifts leftward if
A) the U.S. interest rate differential decreases. B) the expected future exchange rate rises. C) the exchange rate for the dollar rises. D) the U.S. interest rate decreases.
How is the R2 value calculated, and what information does this give you?
What will be an ideal response?
The richest 5 percent of the U.S. population holds approximately ______ percent of total U.S. personal savings
a. 10 percent b. 95 percent c. 30 percent d. 50 percent e. 75 percent