Ill References: Economics, Taxation & A R. by: Manapat, p. 3 Applied Economics. by Diva, p. \\ ho Concept Note # 5 A. Models & Theories Values Integration: A. Models - are used to illustrate, demonstrate & represent a theory or parts of it. It simplify an explanation or description of a certain economic phenomenom, often employing graphs, diagrams & mathematical formula, B. Theories - are proportions about certain variables that scientifically explain a certain phenomena. An example: the Population Theory of Robert Thomas Maltus scrutinizing foods & population. B. Analysis 1. What is the difference between the concept of the theory & model? C. Generalization Models are used to illustrate & represent a theory or parts of it. Theories are proportions certain phenomena. D. ASSESSMENT: Essay: (5 points) 1. When do you call a phenomenon, if it is a theory or a model? IV. Questions/Activity: 1. Using a Venn Diagram, identify the difference & similarity of Scarcity & Shortage. 2. Give examples for each