How Do Economists Begin Building an Economic Model

question 131

Multiple Choice

How do economists begin building an economic model?

• A) by writing grants for government funding
• B) by conducting controlled experiments in a lab
• C) by making assumptions
• D) by reviewing statistical forecasts

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Definitions:

Instincts

Innate, fixed patterns of behavior in animals and humans in response to stimuli, which are not learned and are often survival-oriented.

Observational Learning

The process of learning behaviors by watching and imitating others, also known as social learning or modeling.

Congruence

In psychology, the alignment or agreement between an individual's self-concept and their actual experiences.

Positive Reinforcement

A behavioral strategy involving the introduction of a desirable stimulus following a behavior to increase the likelihood of its recurrence.