Chapter 1 Flashcards
1
Q
What’s Ceteris Paribus?
A
The Assumption that all things remain equal
2
Q
What’s Positive economics?
A
The scientific study of the allocation of resources.
3
Q
What’s Normative Economics?
A
The study and presentation of policy prescription and the value judgements and the way that scarce resources are allocated.
4
Q
What’s a postive statement?
A
A statement supported or refuted by evidence.
5
Q
What’s a Normative statement?
A
A value judgement that cannot be supported or refuted.
6
Q
What is a value judgement?
A
An evaluation of how good or bad you think an idea is. (Opinion)
