Economics as a Social Science

Question 1

Why is Economics considered a Social Science?

Answer 1

It is the study 📖 of human 👨 👩 behaviour

Question 2

What 2 models do economists use to predict the behaviour of producers & consumers?

Answer 2

1. Theoretical Models 🔤

2. Empirical Models 🔢

Question 3

What is a Theoretical Model?

Answer 3

Theoretical Models 🔤- helps explain & simplify economic phenomena (fact)- based on theory ✖️evidence- assumption

Question 4

What is an Empirical Model?

Answer 4

Empirical Model 🔢- predicts economic phenomena (numerical data showing effects in change in economy)- e.g. sugar tax- more detail- evidence & fact support prediction- data

Question 5

What is a phenomenon?

Answer 5

Phenomenon- observed fact/detail

Question 6

What is Ceteris Paribus?

Answer 6

Ceteris Paribus- all other things/variables remain constant/equal/same

Question 7

Why is Ceteris Paribus used?

Answer 7

Needed because economist ✖️ test models in scientifically controlled 🧪 – economy too large (too💰& difficult)- helps to isolate one factor/variable