A Good Economic Model Has

question 37

Multiple Choice

A good economic model has

• A) testable predictions.
• B) absence of assumptions.
• C) extreme simplifications.
• D) ambiguous predictions.

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Definitions:

Assignable Variation

Variation in a process that can be traced to specific causes, as opposed to random or common cause variation.

Malfunctioned

Referred to when an item or system does not operate as intended or fails to perform its required function.

Temperature Change

The difference in temperature between two points in time or space, indicating a warming or cooling trend.

Average Run Length

A statistical measure in quality control indicating the expected number of items to be processed before a change or fault is detected.