Models in Economics

Abstract This chapter discusses the role of economic models and introduces basic mathematical concepts. It elaborates the role that verbal, mathematical, and visual analyses play in economics. The principle of using abstraction to analyze problems is discussed. Thought experiments and their role in economic analysis are introduced and discussed. Mathematical concepts, including the notion of a set, a subset of a larger set, the intersection of two sets, and the empty set are presented. Mathematical symbols used in the text are listed and identified.