Explain the roles of economics theory, Microeconomics

Assignment Help:

Explain the roles of economics theory.

Roles of Economic Theory

An economic theory has three probable roles:

a. This can be used to describe economic behavior and economic phenomena into the real world.

b. This can make scientific predictions or deductions regarding possible outcomes and effects of adopted economic mechanisms while economic environments and individuals’ behavior are suitably described.

c. This can be used to refute faulty objectives or projects before they are actually undertaken. When a conclusion is not probable in theory, then this is not possible into a real world setting, as long as the assumptions were approximated realistically.


Related Discussions:- Explain the roles of economics theory

Illustrate the income changes and consumption choice, Illustrate the income...

Illustrate the income changes and consumption choice. Income Changes and Consumption Choice: This is of interest to see at how the consumer’s demand changes when we hold pri

Double jeopardy, Double Jeopardy A condition where an entrepreneur's m...

Double Jeopardy A condition where an entrepreneur's main source of income and net worth depend on the entrepreneur's organization.

Cost of job loss, When a worker is fired orlaid off, they experience a sign...

When a worker is fired orlaid off, they experience a significant out-of-pocket cost. That cost of job loss relies on how much they were earning in their job, how long it takes them

Marginal revenue productivity, to what extent does Marginal revenue product...

to what extent does Marginal revenue productivity theory explain wage determination in Zimbabwe

Estimate all of the parameters in the saving equation, Consider a family sa...

Consider a family saving function for the population of all families in the United States: sav = β 0 + β 1 inc + β 2 hhsize + β 3 educ + β 4 age + u where hhsize is househol

Individual demand, INDIVIDUAL DEMAND * Price Changes - Using figures...

INDIVIDUAL DEMAND * Price Changes - Using figures developed earlier, the impact of a change in price of food can be shown by using indifference curves.  Effect of Price

Public-private partnerships, Public-Private Partnerships (PPPs):A form of f...

Public-Private Partnerships (PPPs):A form of financing public investment and sometimes the direct provision of public services, in that finance is provided by private investors (in

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd