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  • How Models, Techniques and Methods Constructed or Borrowed from Economic Theory or other Sciences Respectively Are Used

     

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ID number:254308
Evaluation:
Published: 24.05.2003.
Language: English
Level: Secondary school
Literature: n/a
References: Not used
Extract

Two of the primary tasks in the world of Economics are prediction and evaluation. This assignment illustrates, at a rudimentary level, how models, techniques and methods constructed or borrowed from Economic Theory or other Sciences respectively are used to help accomplish these tasks. To do so, we consider a standard theoretical model of consumer choices in an economy in which the only activity is the exchange of goods.
Due to the above-mentioned we can say that the most powerful technique used to predict the consequences of policies or future trends is modeling. …

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