Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Economists make three types of assumptions when developing models: Negligible assumptions (we assume things that do not impact the model do not matter}; domain assumptions
Economists make three types of assumptions when developing models: Negligible assumptions (we assume things that do not impact the model do not matter}; domain assumptions (we assume something about the domain in which the model applies}; and heuristic assumptions {assumptions made that we know are unrealistic but allow us to build the model. Critically evaluate the assumptions of the ghwhlin model. For each one, label it as a negligible, domain. or heuristic assumption. What would it imply about the usability of the model if domain assumptions were violated? What would change about the model if we removed the heuristic assumptions
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started