ECON 305 Study Guide - Midterm Guide: Consistent Estimator, Rational Expectations, Jargon
Document Summary
Use the scrap paper assigned to you for rough work only do not hand it in. Write your nal answers on the exam paper itself and limit yourself to the space provided below each question. Do not write on the back of the exam paper. For your own sake, write as neatly as possible and label all diagrams clearly. If a question asks you to explain, you are expected to provide economic intuition in plain english (making minimal use of economic jargon). [1a] if a theory makes one or more unrealistic assumptions, it is necessarily useless. [marker: there are several ways in which one might answer this question, so be generous with your grading as long as the answer comes close to below and/or otherwise makes sense. ] Most theories contain unrealistic assumptions in the sense that they abstract from forces that are considered to be relatively less important for understanding a given phenomenon.
