C1 - Econ As A Social Science Flashcards
1
Q
The Scientific Method
A
- Postulate a model & provable hypothesis
- Gather conclusive evidence
- Further experiments
- Modify hypothesis
2
Q
What is a Law ?
A
A universally accepted theory
3
Q
What is a theory ?
A
A looser model
4
Q
All other things being equal
A
Ceteris Paribus
5
Q
Positive Economics
A
Objective, provable, evidence is conclusive
6
Q
Normative Economics
A
Value judgments, study of policy perscriptions, unprovable
7
Q
Income equality
A
Relative gap between rich and poor
