How models, techniques and methods constructed or borrowed from Economic Theory or other Sciences respectively are used.
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. A model is an abstract…
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