Chapter 1 - Economics as a Social Science

Question 1

Ceteris Paribus

Answer 1

All things being equal. All other variables kept constant.

Question 2

Normative Economics

Answer 2

Study of policy involving value judgment about allocation of resources.

Question 3

Normative Statement

Answer 3

Statement that can’t be supported or refuted because it’s value judgment.

Question 4

Positive Economics

Answer 4

Scientific study of resource allocation.

Question 5

Positive Statement

Answer 5

Statement that can be supported or refuted by evidence.

Question 6

Social Science

Answer 6

Study of societies and human behaviour using variety of methods including scientific.