chapter 1

Question 1

ceteris paribus

Answer 1

all things being equal.

Question 2

law

Answer 2

a theory or model which has been verified by empirical evidence

Question 3

normative economics

Answer 3

the stud and presentation of policy prescriptions involving value judgements about the way in which scarce resources are allocated

Question 4

normative statement

Answer 4

a statement which cannot be supported or refuted because it is a value judgement

Question 5

positive economics

Answer 5

the scientific or objective study of the allocation of resources

Question 6

positive statement

Answer 6

a statement which can be supported or refuted by evidence

Question 7

scientific method

Answer 7

a method which subjects theories or hypotheses to falsification by empirical evidence

Question 8

social science

Answer 8

the study of societies and human behaviour using a variety of methods, including the scientific method

Question 9

theory, model

Answer 9

a hypothesis which is capable of refutation by empirical evidence