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Unformatted text preview: models to analyze issues. Models are abstract or stylized characterizations of the real world that are not meant to be realistic in literal sense of the term. Rather, models attempt to strip down complex reality to the bare essentials so that one can see the forest for the trees. Depending on what question is being asked, models can be of varying degrees of complexity, depending on what question is being asked. Often mathematics provides a helpful language for reasoning. But a model doesnt have to use math to be a model. Models are an essential precursor to attempts to make quantitative or empirical assessments of economic questions because they provide a framework for deciding: what to measure how to measure it Positive economic questions : Economic questions that can be answered by an appeal to the facts. Normative economic questions : Economic questions that concern what ought to be. Answers require value judgments....
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- Spring '06