What does it mean to say economics is an empirical science, and how is this related to the question of deciding on the usefulness of a model?
What will be an ideal response?
Economists examine evidence to test whether a model is useful or not. That is, real-world data are studied to see if they conform to the predictions of the model. A model is useful if it generates testable predictions and implications for the real world. A model that predicts better is generally considered a better model.
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Public companies ________ and private companies ________
A) sell stock in financial markets; also sell stock in financial markets B) sell stock in financial markets; do not sell stock in financial markets C) do not sell stock in financial markets; sell stock in financial markets D) do not sell stock in financial markets; also do not sell stock in financial markets
Discuss the practical difficulties associated with practicing perfect price discrimination
What will be an ideal response?