Economics as a Social Science Flashcards

Term 1, Year 10

1
Q

How is economics a social science?

A
  • Deals with human society and behaviour.

- Uses the social scientific method.

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2
Q

Explain economists are model builders.

A
  • Models: closely related to theories and laws.
  • Theory: tries to explain why certain events happen and make predictions.
  • Law: concise statement of an event which is supposed to have universal validity.
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3
Q

Explain ‘ceteris paribus’.

A

Means ‘other things equal’. Another way of saying that all other things are assumed to be constant or unchanging.

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4
Q

Explain ‘rational self-interest’.

A

Individuals are assumed to act in their best self-interest, trying to maximise the satisfaction (utility) they expect to receive from economic decisions.

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5
Q

Define ‘microeconomics’

A

Studies the behaviours of individuals within an economy; consumers and producers in particular markets.

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6
Q

Define ‘macroeconomics’

A

Studies the total effect on a nation’s people of all economic activity within that nation.

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