LS2 - Economics as a Social Science Flashcards
Why do economists develop models?
To explain or predict economic phenomena
Because they cannot experiment using a lab
Why cannot economists experiment using the economy?
There are many different factors which manipulate the economy which would make it difficult to run experiments
What does theoretical mean?
Something that is not based on data and is based on theory
What does empirical mean?
Something that is based off data
What is the purpose and value of theoretical models?
To explain economic phenomena and simplify complex phenomena
What is the purpose and value of empirical models?
To predict economic phenomena
What does Ceteris Paribus mean?
When all other factors during analysis are assumed to remain equal
Why do economists assume Ceteris Paribus?
Because there are a lot of factors which affect an economy, so the only way to use data is to assume the other variables remain constant
Why is Economics a social science?
Because a social science studies society and the people in it
What is a law?
A theory that gains universal acceptance and been verified by empirical data
What is a hypothesis?
An idea which serves as an explanation for something, but has not yet been proved
Why are economic theories and models said to be unrealistic?
As they are simplified so they are easier to understand and therefore may omit details
How do you set up a randomised controlled trial?
Split patients up into a treatment group and a control group. Then, assign them a random assignment and do a follow up test after. Then, compare the results.
