Micro-Basic economic problem: social science

Question 1

What is the basic economic problem created by?

Answer 1

• Resources are scarce ( finite)
• Wants are infinite

Question 2

What is the study of ecomics fundimentally about?

Answer 2

Allocation of resources. We make choices about how to allocate finite resources between competing uses

Question 3

Why do econmoists build models?

Answer 3

To understand how we humans should slove the **ecomics probelems and allocate resoures **( slove the basic ecomic probelme)

Question 4

Why must we make assumptions?

Answer 4

Humans behavour is vey comples, assumtion are needed to make models

Question 5

Assumtions

What is the assumptiona that- all things being constant/equal

Answer 5

Ceteris paribus

Question 6

Why is Ceteris paribus used?

Answer 6

There are many factors effecting the thng in question e.g spending however we are only intersted on alising on things effect on anouther e.g. income and spending igonring job security ect

Question 7

Why isn’t economics considered a hard science?

Answer 7

• Complexity of human behaviour and the** number of assumption whic must be made** it cann’t be a hard science
• we cann’t conduct exprement on how one variable would effect anouther

Question 8

Define social science

Answer 8

The scientific study of societies and social interaction.