Disclaimer: This is an example of a student written assignment.
Click here for sample essays written by our professional writers.

Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com.

Economics Analytical Tools

Paper Type: Free Assignment Study Level: University / Undergraduate
Wordcount: 246 words Published: 12th Jun 2020

Reference this

Question

What are some of the basic analytical tools of economics?

Answer

The tools of economic analysis are found to be in the realm of mathematics. Some key tools are described below: · Graphs and diagrams - A graph or a diagram presents the relationship between two or more sets of data or variables that are related to one another. Graph depicts the functional relationship between two or more economic variables. · Identities - An identity explains an equilibrium condition or a definitional condition. A definitional identity explains that two alternative expressions have exactly the same meaning. For example, total profit is defined as the excess of total revenue over total cost, and we can denote as: π ≡ TR - TC Where π is total profit, TR is total revenue and TC is total cost. · Function - A 'function' explains the relationship between two or more economic variables. A simple technical term is used to analyse and symbolizes a relationship between variables. It is called a function. It indicates how the value of dependent variable depends on the value of independent or other variables. It also explains how the value of one variable can be found by specifying the value of other variable. · Equations - Equations are used to calculate the value of an unknown variable. An equation specifies the relationship between the dependent and independent variables. Each equation is a concise statement of a particular relation.

References

 

Cite This Work

To export a reference to this article please select a referencing stye below:

Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.

Related Services

View all

DMCA / Removal Request

If you are the original writer of this assignment and no longer wish to have your work published on UKEssays.com then please: