1.1.1 Economics As A Social Science 👩🔬✅ Flashcards
1
Q
What is a model?
A
A theoretical concept designed to look at how two different variables interact.
2
Q
Define economics?
A
The investigation of how scarce resources are allocated to provide for unlimited wants.
3
Q
What are the aims for economics?
A
- increase economics and social welfare.
- to provide information to allow informed judgements.
- look at models to predict outcomes
- provide suggestions on dealing with the economic problem.
4
Q
What is the economic problem?
A
Shortage in resources and unlimited wants.
5
Q
What are some difficulties in economics?
A
- lack of complete information.
- many different variables.
- economics is not an exact science (effects can vary, not just 2 +2=4)
6
Q
Define ceteris paribus? Pos + neg?
A
‘All things being equal’ (ignore other factors)
P = simplifies complex relationships.
N = In real world this is a challenge
7
Q
Use ceteris paribus?
A
If demand for a good is above the supply prices will go up ceteris paribus.
8
Q
Why is econ unable to make scientific experiments?
A
- can’t control conditions + many of them.
- use natural experiment.
9
Q
How is economics/social sciences different to the scientific method?
A
- studies human behaviour
- uses a lot of probability
- different interpretations
- there are no control groups
