an introduction to economics
- Created by: Emilysh02
- Created on: 05-06-19 13:53
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- an introduction to economics
- economics is a social science
- economics is seen as a social science because it looks at the behaviour of humans and their use of scarce resources.
- the methodology that economists use to tackle economics is similar to the methodology used by scientists in natural and other sciences
- however economists cant conduct controlled lab experiments where one variable is changed at a time.
- to get around the problem of the existence of multiple variables, economists use the assumption known as 'ceteris parabus' - which is latin for 'all other things remaining equal'
- however economists cant conduct controlled lab experiments where one variable is changed at a time.
- economic decisions might not always make the most economic sense
- these decisions might be based on:
- normative statments
- moral views and value judgements
- political judgements
- short term positive consequences
- these decisions might be based on:
- there are two kinds of economic statement:
- positive statements
- positive statements are objective statements that can be tested by referring to the available evidence.
- normative statements
- normative statements are subjective statements which contain a value judgement- they're opinions
- positive statements
- economics is a social science
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