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Demand and supply can also be used to model the distribution of income to the factors of production, including labour and capital, through factor markets. By claiming to be charging for the 'service' of cashing a paycheck, instead of merely charging interest for a short-term loan, laws which strictly regulate moneylending costs can be effectively bypassed.
The regulation of moneylenders is typically much looser than that of banks. This has led some critics to argue economics is not a science. In general, economists reply that while this aspect may present serious difficulties, they do in fact test their hypotheses using statistical methods such as econometrics and data generated in the real world. The field of experimental economics has seen efforts to test at best backup generator for home 2016
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Although the conventional way of connecting an economic model with the world is through econometric analysis, economist and professor Deirdre McCloskey, through what is known as the McCloskey critique, cites many examples in which professors of econometrics were able to use the same data to both prove and disprove the applicability of a model's conclusions ozone generator rental home depot
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