An Economic Model Is Tested by

question 1

Multiple Choice

An economic model is tested by

• A)examining the realism of its assumptions.
• B)comparing its predictions with the facts.
• C)comparing its complexity to other models that deal with similar issues.
• D)the Testing Committee of the Canadian Economic Association.
• E)comparing its descriptions and examining the realism of its assumptions.

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Definitions:

High Level of Fear

An intense emotional state caused by the perception of imminent danger or threat.

Terminal Values

Terminal values are the deeply held beliefs and principles that an individual or culture sees as ultimate goals and ends in life, such as happiness, success, and peace.

Instrumental Values

Core values that reflect beliefs about the means to achieve desired ends.

Complex Phenomena

Events or processes that involve multiple interrelated factors and cannot be easily explained or predicted by simple rules or models.