Why do economists use models, and to what extent is it important that these models are realistic Example For Students

Why do economists use models, and to what extent is it important that these models are realistic? One of the main reasons as to why we construct models is because we wish to know why something is as it is. We use these models all the time to decide how to act, not only in economics but also in real life. For example because we know that fire burns we tend not to put our hands in a flame. In economics however these models are used obviously for economic understanding and to act upon the findings. In economics there are two types of models a positive model and a normative model. A positive model deals with facts and figures, which can be proven whereas when using normative models you tend to find that they deal with the way things ought to be. The main type of model for solving problems and looking at the economy are the positive models. The basic use of an economic model is to help economists to understand and predict a large number of economic problems such as unemployment and inflation. Economic models are usually based on real life situations, although they are often simplified in order for the economists to obtain a greater understanding of the problem or situation. Models help economists because they can explain a very complex problem in a very straightforward way. Models are used in everyday life, not just in economics. We will write a custom essay on Why do economists use models, and to what extent is it important that these models are realistic? specifically for you for only $16.38 $13.9/page Order now For example road maps of Britain are simplified models because they only show the main roads and give a rough shape of a city, whereas in A-Zs of a particular city, the maps show every road even the really small insignificant ones. Looking at models like this show us how models can be used to help the understanding of a situation because of someone was wishing to travel from Sheffield to London, they probably wouldnt use A-Zs of every area they went through, but instead they would use a road map, which only depicted the main roads. In economics terms this means that if an economist was generally looking at a problem he would use a model to get the basic idea of what the situation is and to highlight the main points of this problem. Models are very valuable resources to economists because not only do they portray a problem they also manipulate the recipients mind into a certain way of thinking. This mode of thought helps the economist not only in that particular example, but also in every problem they are faced with. This is because economists dont have to learn every single model ever made in order to become a good scholar, but it is helpful to have the skill of interpreting the majority of models that they come across. A single model helps to do this because if you can interpret one model you can usually cope with other examples. Although models can display problems in an understandable way they are not extremely realistic because they tend to concentrate on a specific area of a problem and then distort that point to make it more understandable. This means, in most cases, that in order to find out about the whole problem economists sometimes need to use a number of different models in order to solve one issue. Most people would expect that if a model were wore realistic then it would be of greater use to economists. This is not usually the case because in the real world most of the problems economist face are very ambiguous in that the real economy is not a straightforward system. Although models dont need to be entirely accurate they still rely on the fact that there is some element of certainty within them. If models were entirely fictional they would be of little use to economists, apart from portraying the perception, of that issue, by the models author. .u1c14db3a2027d8c7f65d058a5840de7d , .u1c14db3a2027d8c7f65d058a5840de7d .postImageUrl , .u1c14db3a2027d8c7f65d058a5840de7d .centered-text-area { min-height: 80px; position: relative; } .u1c14db3a2027d8c7f65d058a5840de7d , .u1c14db3a2027d8c7f65d058a5840de7d:hover , .u1c14db3a2027d8c7f65d058a5840de7d:visited , .u1c14db3a2027d8c7f65d058a5840de7d:active { border:0!important; } .u1c14db3a2027d8c7f65d058a5840de7d .clearfix:after { content: ""; display: table; clear: both; } .u1c14db3a2027d8c7f65d058a5840de7d { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u1c14db3a2027d8c7f65d058a5840de7d:active , .u1c14db3a2027d8c7f65d058a5840de7d:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u1c14db3a2027d8c7f65d058a5840de7d .centered-text-area { width: 100%; position: relative ; } .u1c14db3a2027d8c7f65d058a5840de7d .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u1c14db3a2027d8c7f65d058a5840de7d .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u1c14db3a2027d8c7f65d058a5840de7d .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u1c14db3a2027d8c7f65d058a5840de7d:hover .ctaButton { background-color: #34495E!important; } .u1c14db3a2027d8c7f65d058a5840de7d .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u1c14db3a2027d8c7f65d058a5840de7d .u1c14db3a2027d8c7f65d058a5840de7d-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u1c14db3a2027d8c7f65d058a5840de7d:after { content: ""; display: block; clear: both; } READ: Two Strong and Brave Women EssayTo summarise, the use and accuracy of models, here is a list of some of their main functions: ; Models may be used to predict the future. In this case it is unimportant if they are completely realistic because the value of the models should be judged in terms of its capability to foresee the future. ; Models may be used to analyse certain groups of individuals. This type of model is generalising the group of individuals so if one certain individual acts differently from the way stated by the model, it doesnt mean that the model is inaccurate because individuals will tend to behave in contrasting ways to the group. Models can be used to portray the workings of a market or an economy. In this case the fact that the predictions of the model are unrealistic is not particularly important because the detail may be realistic, in the model, but it may not be able to foretell the future. If the model is normative then obviously the realism is trivial due to the fact that is depicting what ought to be happening. Models that are very simple may still be useful because the assumptions raised by it may be powerful but simple conclusions. Good models, which are of the up most importance to economists, contain relevant insights into the problem even if this means that they have to modify what actually occurs in the real world, this gives a more in depth understanding of the issue at hand. Also the best models are usually the simplest due to the fact that they are easy to construe.

Free Essays on Slave History

2. Describe the change in slavery as an institution from 1680 to 1739. By the 1680’s, planters in Chesapeake colonies of Virginia and Maryland began to shift from servants to slaves and the rest of the colonies were soon to follow. Two factors aided in the institutionalization of slavery, the decline of indentured servitude and the availability of African slaves. The Spanish and Portuguese first brought African slaves to America to replace the number of dwindling of Indian slaves. The Dutch soon followed in the profitable business of slave trade, other colonies adopted the trade slowly. The growing colonies were increasing; and decline in servant migration produced a labor crisis. With the spread of tobacco farming in the 1670's, and the diminishing number of people willing to sign-on as indentured servants in the 1680's, increasing numbers of slaves were brought in from Africa. They replaced Native American slaves, who were found to be susceptible to diseases of European origin. Slavery provided the labor force for a high-pressure profit-making capitalist system of plantation agriculture producing cotton, sugar, coffee, and cocoa for distant markets. They were fundamental to the economy, and highly profitable. The availability and convenience of them also made the slaves so desirable. In 1964 English companies began transporting slaves in to the Caribbean and mainland. By the 1720 slave trade was institutionalized in all southern colonies. In conclusion slaves were seen not as people they were seen as property, the lack of servants and availability of slaves made slavery so desirable for farmers, which made institutionalizing slavery easy.... Free Essays on Slave History Free Essays on Slave History 2. Describe the change in slavery as an institution from 1680 to 1739. By the 1680’s, planters in Chesapeake colonies of Virginia and Maryland began to shift from servants to slaves and the rest of the colonies were soon to follow. Two factors aided in the institutionalization of slavery, the decline of indentured servitude and the availability of African slaves. The Spanish and Portuguese first brought African slaves to America to replace the number of dwindling of Indian slaves. The Dutch soon followed in the profitable business of slave trade, other colonies adopted the trade slowly. The growing colonies were increasing; and decline in servant migration produced a labor crisis. With the spread of tobacco farming in the 1670's, and the diminishing number of people willing to sign-on as indentured servants in the 1680's, increasing numbers of slaves were brought in from Africa. They replaced Native American slaves, who were found to be susceptible to diseases of European origin. Slavery provided the labor force for a high-pressure profit-making capitalist system of plantation agriculture producing cotton, sugar, coffee, and cocoa for distant markets. They were fundamental to the economy, and highly profitable. The availability and convenience of them also made the slaves so desirable. In 1964 English companies began transporting slaves in to the Caribbean and mainland. By the 1720 slave trade was institutionalized in all southern colonies. In conclusion slaves were seen not as people they were seen as property, the lack of servants and availability of slaves made slavery so desirable for farmers, which made institutionalizing slavery easy....

Research Methods Essay Example | Topics and Well Written Essays - 500 words - 1

Research Methods - Essay Example A fairly classic, everyday example of this is a fictional study that found a correlation between ice cream consumption and murder rates. In studying the two variables in a specific area, e.g., New York City, it would become clear that there is a relationship between ice cream consumption and murder because over the course of the year, they both rise and fall in a seemingly related pattern. Does homicidal proclivity derive from consuming too much ice cream No, it doesn't. The confounding variable here is the heat. As summer becomes hotter, people eat more ice cream; research has shown they also tend to have more violent outbursts. In this case, there is no valid relationship between the two variables even though, from a limited perspective, there appears to be one. For a research study to be effective or believable, it has to have strong conclusions (validity) which are based on consistent measurements (reliability); thus, the research design needs to consider these two elements and factor in methods which ensure a high quantity of each (Cohen, Manion, & Morrison, 2000, p. 129). This approach provides the reader or researcher with confidence that the data was measured in a scientific and repeatable way, and that the conclusions are accurate and truthful as we can best understand them.