1.4

Question 1

positive economics

Answer 1

based on positive statements (something that was, is or will be), used to describe economical events by use of hypotheses, theories and models

Question 2

positive economics may be

Answer 2

-DESCRIBING something
-statements in a hypothesis that try to EXPLAIN something
-statements that PREDICT a future event

Question 3

normative economics

Answer 3

based on beliefs or value judgements about what SHOULD happen, about what is good or bad, right or wrong

Question 4

the scientific method

Answer 4

1. observation/ question
2. research topic area
3. hypothesis
4. test with an experiment
5. analyze data
6. report conclusions

Question 5

hypothesis

Answer 5

an educated guess, usually indicating that a cause-and-effect relationship about an event; can often be stated as if-than

Question 6

assumption

Answer 6

statement that is supposed to be true for the purposes of building the hypothesis

Question 7

ceteris paribus

Answer 7

‘other things equal’; all the other variables, except the one that you are studying, are assumed to be fixed or unchanged

Question 8

empirical evidence

Answer 8

real-world information, observations and data that we acquire through our senses and experience

Question 9

theory

Answer 9

a general expression of a set of interrelated events, usually based on several hypotheses that have been tested successfully

Question 10

lax

Answer 10

a statement that describes an event in a concise way and is supposed to have universal validity; based on theories and have been successfully tested very many times

Question 11

refutation

Answer 11

the idea that it must be possible to REFUTE or disprove a hypothesis or a theory (if it can’t be - it’s not scientific)

Question 12

refutation =

Answer 12

falsification

Question 13

equality

Answer 13

being the same