Economists Need to Develop Abstractions in Order To

question 58

Multiple Choice

Economists need to develop abstractions in order to:

• A)avoid analyzing real-world economic interactions, which are too complicated to understand.
• B)distinguish normative economic behavior from positive economic behavior.
• C)avoid committing the fallacy of composition.
• D)understand and explain economic behavior.
• E)justify their salaries, much in the way lawyers speak and write in "legalese."

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Definitions:

MSR/MSE

Mean Square Residual/Mean Square Error, a measure used in statistics to estimate the variance of error or residual components.

T-Test Statistic

A statistic derived from sample data to determine if there is a significant difference between the means of two groups under study.

F-Test Statistic

A statistical method for comparing the variances from two different populations to ascertain if there is a significant difference between them.

Coefficient Of Determination

A statistical measure, often denoted as R^2, that represents the proportion of the variance for a dependent variable that's predictable from the independent variables in a model.