1) Economic Methodolgy Flashcards
1
Q
What is the economics the study of?
A
Economics is the study of how the world’s scarce resources are allocated to competing uses to satisfy society’s wants.
2
Q
Economics as a social sciences?
A
As a social science, economics attempts to adopt a scientific methodology for observing the behavior of individuals and groups then make predictions based upon these observations.
3
Q
What are positive economic statements.
A
Positive economic statements are objective statements that can be tested against evidence and thus declared true or false.
4
Q
What are normative economic statements?
A
Normative statements are subjective opinions or value judgements that can’t be tested against evidence.
