1.1.1 - economics as a social science Flashcards
1
Q
How do economists try to understand the economy?
A
Through making assumptions to help them create models.
2
Q
Why do economists have to make assumptions?
A
Human behaviour is difficult to predict and individuals behave in very different, random ways.
3
Q
Which term means to hold things constant?
A
Ceteris Paribus
4
Q
Why is economics a social science?
A
It studies human behaviour which is complex and multi-dimensional. They have to analyse human behaviour (social)
5
Q
What does DICE mean?
A
D - define
I - illustrate
C - calculate
E - example
6
Q
What is economics?
A
The study of how groups of individuals make decisions about the allocation of scarce resources.
