Economics as a social science Flashcards
1
Q
What is a model?
A
A model is a simplified representation of reality used to provide insight into economic decisions and events
2
Q
Describe a mode
A
- They are used to cope with the complexity of the real world
- They help economists study how different variables work together
- They often use real world information
- They almost always begin with assumptions
3
Q
What is the important of using assumptions?
A
Assumptions are used to help economists simplify their questions
4
Q
Define Ceteris Paribus
A
All other things being equal
5
Q
What is the use of Ceteris Paribus?
A
It allows economists to analyse the relationship between variables without the complications of other influencing factors
6
Q
Why is it impossible to rely on scientific experiments in economics?
A
- Economics is based on personal opinion
- It cannot be controlled
- It relies on observation and assumptions
