Analyzing a Historical Economic Shock
An economic historian is modeling the impact of a newly discovered, more resilient strain of wheat on a pre-industrial society. The discovery is treated as a one-time event that is not explained by any other factor within the model. The historian's goal is to use the model to predict the resulting long-term changes to the society's total population and the average income per person.
Based on this scenario, identify the single exogenous variable and the two primary endogenous variables. Justify your choices.
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Social Science
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CORE Econ
Economics
Economy
Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
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Consider an economic model designed to explain long-run living standards. The model operates as follows:
- The level of available technology is taken as a given input.
- The size of the population determines the total output produced, according to the given technology.
- Total output and population size together determine the average income per person.
- The average income per person, in turn, causes the population to either increase or decrease.
Based on the internal logic of this model, which of the following statements provides the most accurate analysis of how these components relate to one another?
Analyzing a Historical Economic Shock
In an economic model of a pre-industrial society, several factors interact. The model assumes a fixed amount of land and a given level of farming techniques. The size of the population determines the total amount of food produced. The amount of food per person then determines whether the population grows or shrinks in the next period. Match each variable from this model to the description of its role.
Identifying Variable Types in an Economic Model
Consider an economic model where the size of the population and the average income per person are determined by the interactions within the model itself. According to this model's logic, a spontaneous discovery of a more resilient crop variety that boosts harvests is an example of a variable determined within the model.
Analyzing Variable Roles in a Pre-Industrial Economic Model
Evaluating Modeling Choices for Economic History
In an economic model of a pre-industrial society, living standards and population size are determined by the interactions within the model. Initially, the level of technology is treated as a fixed input, determined outside the model. A researcher modifies the model so that the level of technology in any given year is now determined by the size of the population in the preceding year. Which statement best evaluates the effect of this modification on the model's structure?
In an economic model designed to understand how a society's population and income levels interact, a factor like a sudden improvement in farming techniques, which is introduced by the modeler to see its effects, is known as a(n) ________ variable.
Evaluating a Model of a Pre-Industrial Agricultural Society