Theme 1.1 Economics as a social science (unit 1) Flashcards
Have all cards created for pages 2-102 in text book
What is a scientific method?
- Puts forward a theory which is capable to be refuted.
- Gather evidence to support or refute theory.
- accept, modify or refute theory.
If it is accepted it is often called a law
What is an economic theory or model?
Models are often made up of maths and have to be very accurate. Whereas a theory is often expressed in words.
Also it us hypothesis which is capable of refutation by empirical evidence.
What is the purpose of modelling?
We use models to decide how to act or how to prevent certain outcomes.
Define ceteris paribus.
Ceteris paribus literally means “all other things being equal”.
What is positive economics?
It is the scientific study of the subject. It is concerned with finding out how economies and markets actually work.
What is a positive statement?
It is something that is either factually correct or incorrect.
What is normative economics?
Normative economics is concerned with value judgments. It deals with the study of presentation of policy prescriptions about economics.
What is a normative statement?
A statement that which cannot be supported or refuted because it is a value statement.
