L2 - Economics as a Social Science Flashcards
1
Q
Why are models used?
A
To show the impact of an economic change - explain how the economy works
2
Q
What is the problem with models?
A
Too many factors and we need to make it simpler
3
Q
What is “ceteris paribus”
A
A term which suggests that every other variable remains the same
4
Q
Why do economists use ceteris paribus?
A
To allow them to focus on 1 or 2 variables
5
Q
Why can’t we use experiments?
A
The economy is something we cannot experiment on
6
Q
What do economists do instead of performing experiments?
A
Rely on data and assumptions to make model that can explain and predict economic phenomena
