Economics as a Social Science Flashcards
1
Q
What does economics use for its basis of investigation
A
scientific method
2
Q
what is economics
A
the study of how groups of individuals make decisions about the allocation of scarce resources
3
Q
why do economists build models and theories
A
to explain economic interactions
4
Q
what is used in building models
A
ceteris paribus - all other things being equal
5
Q
what does positive economics deal with
A
statements of ‘fact’ that can either be refuted or supported
6
Q
what does normative economics deal with
A
value judgements, often in the context of policy recommendations. Can’t be supported or refuted
7
Q
what are theories that have gained universal acceptance called
A
law
