An Introduction To Economics

Question 1

Why is economics a social science?

Answer 1

Economics looks at the behaviour of humans

Question 2

What methodology is used in economics?

Answer 2

Devolplment theories
Use simplifying assumptions
Test theories
Economic models

Question 3

What does celebrius paribus mean?

Answer 3

All other things being equal

Question 4

Why don’t economic decisions always make economic sense?

Answer 4

Economics deals with real people, decisions made by individuals, firms or governments will be based on opinion and judgements

Question 5

What are normative statements?

Answer 5

People’s opinions

Question 6

What are moral views and value judgements?

Answer 6

Views and opnions

Question 7

What are political judgements?

Answer 7

Lowering taxes if you vote for me

Question 8

What are short term positive consequences?

Answer 8

Decisions regardless of long term consequences

Question 9

What are the 2 types of economic statements?

Answer 9

Positive and Normative statements

Question 10

What are positive statements?

Answer 10

Objective statements that can be tested using available evidence

Question 11

What are normative statements?

Answer 11

Subjective statements which contain a value judgement - an opinion