1.1.economic methodology

Question 1

What is economics?

Answer 1

studies the economic behaviour and economic relationships between individuals and groups of people

Question 2

How does economic scientific methodology work?

Answer 2

Observations -> Hypothesis -> Predictions -> Test -> Theory & further tests/ Rejected & so amended/ Rejected

Question 3

Positive economics?

Answer 3

Concerned with ‘what is’ & ‘what will happen’ if a course of actions is taken/ not taken.

Question 4

Normative economics?

Answer 4

Concerned with ‘what should or ought to be’

Question 5

Positive statement

Answer 5

A statement of fact that can be scientifically tested to see if it is correct or incorrect

Question 6

Normative statement

Answer 6

A statement that includes a value judgement and cannot be refuted just by looking at the evidence (ought, should, better and worse)