Microeconomics 4.1.1.1 Economic Methodology
- Created by: bep.decruz
- Created on: 06-12-19 09:48
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- 4.1.1.1 - Economic Methodology
- Economics studies social behaviour which guides the allocation of scarce resources to meet the unlimited wants & needs of society.
- It is considered a social science as it uses scientific methods to build theories to explain human & organisations behaviour
- MARKETS (capitalism): Allocates items to those who can afford it (limited resources - high costs)
- GOVERNMENT (communism):Allocates items to those who need it (e.g. children)
- NEEDS: Goods & Services required for human survival. These are often finite
- WANTS: Things desired by society & the culture people live in. These are often infinite
- GOVERNMENT (communism):Allocates items to those who need it (e.g. children)
- STATEMENTS
- POSITIVE: Can be tested against facts to determine whether it is true or false
- e.g. "University tuition fees increase up to a maximum of £9000 yearly"
- NORMATIVE: Is opinion based
- e.g. "Higher university fees are unfair to students from low income families"
- POSITIVE: Can be tested against facts to determine whether it is true or false
- % Change = [(new number - old number) ÷ old number] x 100
- Economics studies social behaviour which guides the allocation of scarce resources to meet the unlimited wants & needs of society.
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