What does the assumption 'ceteris paribus' mean in an economic model?
Question 21 mark
Why is it harder for economists than for chemists to run controlled experiments?
Question 31 mark
A model predicts that a rise in bus fares reduces bus journeys. Fares rose and journeys also rose. Which change is most likely to explain this without rejecting the model?
Question 41 mark
Town A introduced a new policy and its unemployment fell 3 percentage points. Similar Town B, with no policy, saw a fall of 1 point. What is the best estimate of the policy's effect?
Question 51 mark
Which is the main purpose of an economic model?
Question 61 mark
Unemployment in a region fell after a training scheme began. Which statement goes beyond the evidence?