Overview
Answer 4 questions from book CH 1 (in the attachment)
Short answer 3 to 4 sentences
Use easy words and easy sentences
- What are the two approaches for verifying economic models? Explain with examples.
- Differentiate between positive economic theories and normative economic theories. Use examples to elaborate your answer.
- Differentiate between exogeneous variables and endogenous variables. Give examples of each of these two types of variables used in mathematical economic models.
- Explain the "Water-Diamond Paradox". How is this paradox resolves?