Why Do Economists Tend to Create Models in Diagrammatic Form

question 116

Multiple Choice

Why do economists tend to create models in diagrammatic form?

• A)Diagrams hide reality, and theory is an attempt to avoid reality.
• B)It is easier than building models out of physical objects.
• C)Economic reality cannot possibly be represented except in diagrams.
• D)Most economists are frustrated artists, and like to draw when possible.
• E)All of the above are correct.

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Definitions:

Volumes

Quantities of three-dimensional space enclosed within a boundary or the contents within a container, measured in cubic units.

Normal Model

A symmetric probability distribution around the mean, indicating that occurrences of data are more common close to the mean than far from it.

Snowfall

The precipitation of flakes of crystalline water ice from clouds.

Normal Model N(73,9.2)

A statistical representation of a normal distribution with a mean (average) of 73 and a standard deviation of 9.2.