Economics as a social science

Question 1

Ceteris paribus

Answer 1

All things being equal
the assumption that, whilst the effects of a change in one variable are being investigated, all other variables are kept constant.

Question 2

Normative economics

Answer 2

The study and presentation of policy prescriptions involving value judgements about the way in which scare resources are allocated.

Question 3

Normative statement

Answer 3

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

Question 4

Positive economics

Answer 4

The scientific or objective study of the allocation of resources.

Question 5

Positive statement

Answer 5

A statement which can be supported or refuted by evidence.

Question 6

Scientific method

Answer 6

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

Question 7

Law

Answer 7

A theory or model which has been verified by empirical evidence.

Question 8

Theory or model

Answer 8

A hypothesis which is capable of refutation by empirical value.