Economic Models

Mathematical economics uses mathematical methods, such as algebra and calculus, to represent theories and analyze problems in economics.

Economists use assumptions in order to simplify economics processes so that they are easier to understand.

Economics, as a science, follows the scientific method in order to study data, observe patterns, and predict results of stimuli.

A model is simply a framework that is designed to show complex economic processes.

Positive economics is defined as the "what is" of economics, while normative economics focuses on the "what ought to be".