If you haven’t read “Part 1: Why I don’t pay attention in Economics class” please do so. This post makes more sense after going through Part 1.
This is a question I got for a recent end-trimester Economics paper:
The expected answer to 2(a) should have contained some of the following:
My answer to 2(a):
“Since the Solow Growth Model came about as a post hoc analysis of a developed country’s economy and history, it quite obviously pertains to the reality in developed countries, more specifically, the USA.”
Answer 2(b) was also expected to be filled with mathematical derivations and graphs. Me? Nopes, I just don’t roll that way. I write out a basic two sentence summation and the assumptions of the Harris Todaro Model and then add the following line:
“How often do the underlying assumptions of this model hold true at the same place at the same time is, well, an interesting question to be asked.”
Edit: Just couldn’t help but put in the following. Taken from http://www.nd.edu/~jstiver/jokes.htm
- A physicist, a chemist and an economist are stranded on an island, with nothing to eat. A can of soup washes ashore. The physicist says, “Lets smash the can open with a rock.” The chemist says, “Let’s build a fire and heat the can first.” The economist says, “Lets assume that we have a can-opener…”
- One night a policeman saw a macroeconomist looking for something buy a light pole. He asked him if had lost something there. The economist said, “I lost my keys over in the alley.” The policeman asked him why he was looking by the light pole. The economist responded, “it’s a lot easier to look over here.”
- An economist is someone who doesn’t know what he’s talking about – but makes you feel it’s your fault.