Micro

Question 1

Ceteris Paribus

Answer 1

All things being equal; the assumption that whilst the effects of a variable are being investigated, all other variables are kept contant

Question 2

Law of demand

Answer 2

As the price of a product decreases people want to buy more because they are more willing and able to do so - they can afford it

Question 3

What will affect demand

Answer 3

Perceived value - quality, preferences, negative publicity, elasticity vs inelasticity, unresponsive people in the market

Question 4

Positive economics

Answer 4

Making factual and objective claims when analysing economic relationships. Hypothesis is based off scientific facts which can be used to make a model - can be FACT checked so can be wrong or right

Question 5

Normative economics

Answer 5

Concerned about how things SHOULD be and involved subjective and value judgements - opinions. ‘Should’ ‘Ought’ ‘Too little’ or ‘Too much’ . Not true or false but pure judgement.