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Question: “Economic models are false and so government should ignore their predictions.” Explain, discuss and evaluate the accuracy of this statement.
Answer: (Please note this is only a part of the entire answer, in order to provide students a brief idea of our high-quality assignments.)
The statement that, “Economic models are false” is not correct on the first place. Economic models are rather simplification of the real world happenings which are all around us. The basic model of demand and supply which is one of the basic models of economics tells us that the quantity demanded of a product is negatively/ inversely related to its price and the quantity supplied of a commodity is directly/positively related to its price and that these two curves of demand and supply intersect in the market to give the equilibrium price and equilibrium quantity sold at the market. This economic model of demand and supply affecting the equilibrium price and quantity is determined by two laws –law of demand and law of supply (McTaggart, Findlay, Parkin, 2009).
These laws basically hold good for almost all the commodities in the market. However the assumptions made about the law of demand and the law of supply – that other things are remaining constant has to be true in order to make the laws hold good. For example the law of demand, states that the quantity demanded of a product or good is negatively/inversely related to its price – other things remaining constant.
A typical answer to the above question should depict:
We Cover All Topics in Economics
You can avail economics writing services on plenty of topics like:
Common Job Titles Held By Economics Majors
Some of the common job titles in the field of economics are as follows:
Top Universities for Economics
The following is a list of the top universities offering economics:
Name of Institution
Massachusetts Institute of Technology (MIT)
University of California, Berkeley (UCB)
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