Intro to Economics Flashcards
Ceteris Paribus
all things being equal - whilst the effects of a change in one variable are being investigated, all other variables are kept constant
Law
a theory or model which has been verified by empirical evidence
Normative Economics
the study and presentation of policy prescriptions involving value judgments about the way in which scarce resources are allocated
Normative statement
an opinion - statement which cannot be proved or refuted by empirical evidence
positive economics
the scientific objective study of the allocation of resources
positive statement
a statement which can be proved
scientific method
a method which subjects theories or models to falsification by empirical evidence
social science
the study of societies and human behaviour using a variety of methods
theory or model
a hypothesis capable of refutation by empirical evidence
