1.1.1 Flashcards
1
Q
What is ceteris paribus?
A
Means “all other things remaining equal”
2
Q
Why do economists develop models?
A
To explain how the economy works.
3
Q
What are examples of economy models?
A
Theories of supply and demand, circular flow of income.
4
Q
When are assumptions made within an economic model?
A
There are too many variables which can change within an economic model.
5
Q
What type of science is economics?
A
social science
