Economics Methodology Flashcards
1
Q
Why is economics a social science ?
A
Because it uses scientific methods to study society and people rather than scientific phenomena
2
Q
Information failure
A
One party may (buyer or seller )
May know more about market conditions than another eg buying second hand cars
3
Q
Give 3 reasons why utility is not maximised ?
A
Affordability
Degree of adictivness
Information failure
4
Q
Affordability
A
Consumers may know which products they are willing to purchase but not able to
5
Q
Degree of adictivness
A
Later regret implies utility was not maximised
