4.1.1.1 Economic Methodology

Question 1

Why is Economics a Social study

Answer 1

uses scientific method to build theory’s , economics is the scientific study of the ownership use and exchange of scarce resources

Question 2

similarities of natural and social sciences

Answer 2

they both use a scientific method

Question 3

Positive statement definition

Answer 3

a statement that can be proved or disproved , e.g the price of oil has gone up

Question 4

Normative statement definition

Answer 4

cannot be proved or disproved e.g opinions or value judgement - ‘oil prices are too high’

Question 5

What are the influences on choices & policies in economics

Answer 5

opportunity cost , positive consequences , beliefs , fairness , incentives

Question 6

What is a social science ?

Answer 6

the scientific study of human society and social relationships

Question 7

Value Judgement

Answer 7

A subjective statement of opinion rather than a fact.

Question 8

Moral Judgement

Answer 8

Judgements that have moral content; they are used to evaluate situations, courses of action, persons, behaviour etc.

Question 9

Political Judgement

Answer 9

Political judgement is based on the need to appeal to selected groups of people.

Question 10

Microeconomics

Answer 10

The part of economics concerned with single factors and the effects of individual decisions.