KEY WORDS Flashcards
Ceteris paribus
All things being equal - the assumption that, 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 prevention of policy prescriptions involving value judgments about the way in which scarce resources are allocated
Normative statement
A statement which cannot be supported or refuted because it’s a value judgment
What are positive economics
The scientific or objective study of the allocation of resources
What’s a positive statement
A statement which can be supported or refuted by evidence
What’s scientific method
A method which subjects theories or hypothesis to falsification by empirical evidence
What’s a social science
The study of societies and human behaviour using a variety of math word including the scientific method
Theory or method
A hypothesis which is capable of refutation by empirical evidence
