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Introduction |
Home Introduction to Economic TheoryEach tour covers a variety of economic theory related to the issues raised in the tour. In the Rural Life and Agriculture Tour the following theories are considered:
Economists use economic theories and model for essentially two reasons:
Many students new to economics find the constant desire to express what on the face of it seems to be a common sense assertion frustrating. Particularly when many of the models used are based on simplifying assumption. Nevertheless reality is often very complex and influenced by numerous interconnected variables. Often assumptions such as ceteris paribus must be made if we are going to be able to isolate certain variables and consider the impact of a change in these. |