Why is data an essential component of the scientific method?
What will be an ideal response?
Data are important for testing a model. Testing with data enables economists to separate the good models from the bad models. When a model is overwhelmingly inconsistent with data, economists try to fix the model or replace it altogether. Thus, data enables empirical testing of models to understand if a model is suitable to analyze the problem at hand.
Economics
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During the early 1930s, the Fed was reluctant to rescue nonsolvent banks out of fear of encouraging:
A) moral hazard B) adverse selection C) bank run D) sovereign debt crisis
Economics
On the eve of the Civil War, cotton was the major crop in the Old South
Indicate whether the statement is true or false
Economics