Answered: What are the human behaviors economists…

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter1: What Is Economics

Section: Chapter Questions

Problem 19AA

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What are the human behaviors economists should observe when creating economic models? Example: people tend to find solutions that are good enough, but not the best solutions..

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Step 1

Introduction

Economic models are mathematical representations of how people make economic decisions. They provide a way to analyze how decisions in the present can affect economic outcomes in the future. Economic models are based on theories of human behavior and use data to form predictions of market trends, economic growth, and other economic indicators. They are used by economists and policy makers to inform decision making, and help identify potential risks and opportunities.

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