A Good Economic Model

question 409

Multiple Choice

A good economic model

• A) describes every aspect of the economic world, with no exception.
• B) includes all those features of the world that can be described numerically.
• C) includes only those features of the world that are needed for the purpose at hand.
• D) should not include more than two variables.

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Definitions:

Directional

Pertains to hypotheses or research that specify a direction (increase or decrease) in the expected outcome.

Null Hypothesis

A default hypothesis that there is no significant difference or effect, typically to be tested against an alternative hypothesis.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect exists between certain characteristics of a population or data.

Equals Sign

A symbol (=) indicating mathematical equality between two expressions.