Organize the steps an economist would follow in the model-building process into their proper order.
- Use simplifying assumptions
- Develop a model
- Collect data
- Identify the problem
- Formulate a conclusion
A. 1. Develop a model. 2. Collect data. 3. Use simplifying assumptions. 4. Identify the problem. 5. Formulate a conclusion.
B. 1. Use simplifying assumptions. 2. Collect data. 3. Develop a model. 4. Identify the problem. 5. Formulate a conclusion.
C. 1. Identify the problem. 2. Develop a model. 3. Use simplifying assumptions. 4. Collect data. 5. Formulate a conclusion.
D. 1. Formulate a conclusion. 2. Collect data. 3. Identify the problem. 4. Develop a model. 5. Use simplifying assumptions.
Answer: C
You might also like to view...
In 2001, the percent of total employment in the manufacturing, mining, and construction sector equaled
a. less than 20 percent. b. 30 percent. c. 40 percent. d. 60 percent.
When building a model, an economist must:
a. adjust for exceptional situations. b. provide a complete description of reality. c. make simplifying assumptions. d. develop a set of behavioral equations.