An Appropriate Test of the Effectiveness of an Economic Model

question 312

Multiple Choice

An appropriate test of the effectiveness of an economic model is

• A) the number of variables contained within the model.
• B) the model's ability to predict future economic activity.
• C) the number of economists who have worked on the model.
• D) the number of assumptions which the economist has made.

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Definitions:

Schachter and Singer

Psychologists known for their two-factor theory of emotion, which proposes that emotion is based on physiological arousal and cognitive interpretation of that arousal.

Cannon-Bard Theory

A theory of emotion that proposes the physiological reaction and the experience of emotion occur simultaneously and independently.

Heart Starts Pounding

A sensation often occurring during moments of stress, fear, or exertion, where the heartbeat becomes more pronounced and faster due to increased adrenaline and workload on the heart.

Fear

An emotional response to a perceived threat, which can be real or imagined, leading to a fight-or-flight reaction.