This week’s shopping list included candy and gourmet popcorn to leave in the kids’ shoes as a surprise on the morning of St. Nicholas Day. They’re likely old enough to discern that a mythical old man isn’t working his way around the world offering treats. But even though St. Nick is unobservable, he is an important part of the season for them.
In economics, we reckon with a number of unobservable concepts and forces.
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