1.1.1 - 1.1.2

Question 1

Assumptions

Answer 1

Initial conditions upon which analysis is built eg. assumption of rationality

Question 2

Ceteris paribus

Answer 2

All things being equal; the assumption that, whilst the effects of a change in one variable are being investigated, all other variables are kept constant

Question 3

Normative statements

Answer 3

Statements that involve value judgements

Question 4

Positive statements

Answer 4

A statement that can be tested against evidence

Question 5

Scientific method

Answer 5

A method which tests theories or hypothesis against empirical evidence

Question 6

Social science

Answer 6

The studies of societies and human behaviour using a variety of methods including the scientific method

Question 7

Theory or model

Answer 7

A hypothesis which can be tested against empirical evidence

Question 8

Economics

Answer 8

The study of how groups of individuals make decisions about the allocation of scarce resources

Question 9

Value judgement

Answer 9

An evaluative statement or opinion usually about whether something is desirable or not, based on principles or beliefs