Learn Before
Economic Model
Feasible Set
The feasible set consists of all combinations of goods or outcomes that a decision-maker can choose given their constraints, such as economic or physical limitations. This collection represents all possible options. For example, in a choice between consumption and free time, the feasible set includes every combination on or below the budget constraint, often depicted as a shaded area on a graph.
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Social Science
Empirical Science
Science
Economy
CORE Econ
Economics
Ch.2 User-centered design process - User Experience Design - Winter 23 @ UI Design in UI @ University of Michigan - Ann Arbor
UI Design in UI @ University of Michigan - Ann Arbor
User Experience Design - Winter 23 @ UI Design in UI @ University of Michigan - Ann Arbor
UI @ University of Michigan - Ann Arbor
User Experience Design @ UI Design in UI @ University of Michigan - Ann Arbor
University of Michigan - Ann Arbor
Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
Ch.5 The rules of the game: Who gets what and why - The Economy 2.0 Microeconomics @ CORE Econ
Ch.9 Lenders and borrowers and differences in wealth - The Economy 2.0 Microeconomics @ CORE Econ
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Economics Models
4 Key Ideas of Economic Models
Characteristics of an Effective Economic Model
Building Economic Models
Applications of Economic Models
Model of Constrained Choice (Decision Making Under Scarcity)
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Feasible Set
Constructing an Economic Model for Price Changes
An economist presents a model of the national housing market that only includes three variables: average household income, national interest rates, and the total number of new houses built per year. A critic argues the model is useless because it ignores dozens of other factors that influence a home-buying decision, such as local school quality, crime rates, and proximity to parks. Which of the following statements provides the most accurate evaluation of the critic's argument?
Choosing the Right Economic Model
The Purpose of Simplification in Economic Models
A social scientist wants to create a simplified representation to understand a specific economic interaction. Arrange the following steps into the logical sequence they would typically follow to construct this representation.
An economic model is considered more effective and useful the more real-world variables and complexities it includes.
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Because it is impossible to account for every detail of the millions of interactions that shape an economy, an economic model is a deliberately ______ representation of reality, designed to focus on the essential features relevant to a specific question.
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Evaluating a Model's Predictive Power
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Assessing an Economic Model by Comparing Predictions to Data
Learn After
Model of Constrained Choice (Decision Making Under Scarcity)
The graph below shows a student's possible combinations of final grades in two subjects, determined by how they allocate a fixed number of total study hours. The shaded area, including its boundary line, represents all achievable grade combinations. Point A is located inside the shaded area, Point B is on the boundary line, and Point C is outside the shaded area. Which statement provides the most accurate analysis of these points?
Budgeting and Possible Choices
An individual's feasible set for two goods is represented by the area on and within a downward-sloping boundary line on a graph. Match each description of a point's location with its correct economic interpretation.
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A student is deciding how to allocate their study time between two subjects. Any combination of grades that lies strictly inside the boundary of their feasible set is considered an impossible outcome because it implies a lack of scarcity in resources.
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In a graphical model representing a person's possible choices between two different outcomes, any specific combination that lies on the outer boundary of the shaded area of possibilities is considered to be an ________ outcome, because it represents a maximum limit of what can be achieved with the available resources.
A farmer has 10 acres of land and can plant either corn or wheat. It takes 1 acre to produce 1 ton of corn and 2 acres to produce 1 ton of wheat. To determine all the possible combinations of corn and wheat the farmer can produce, you need to construct a graphical representation of their options. Arrange the following steps in the correct logical order to define the farmer's feasible set.
A student has a weekly budget to spend only on two items: cups of coffee and sandwiches. The graph of their possible consumption combinations is a triangle, with the axes representing the quantity of each item and the downward-sloping line representing the maximum combinations they can afford. If the price of a cup of coffee decreases, while the student's budget and the price of sandwiches remain unchanged, how will this affect the area representing all their possible choices?
Analyzing Production Efficiency