Economics as a social science (1.1.1)
- Created by: April15
- Created on: 11-10-19 12:48
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- Economics as a Social Science (1.1.1 and 1.1.2)
- The Scientific Method
- A scientist puts forward a hypothesis which is capable of refuation
- The scientist gather evidence to support or refute the theory
- Scientist accepts, modifies or refutes the theory
- Theories which gain universal acceptance are called laws
- Scientist accepts, modifies or refutes the theory
- The scientist gather evidence to support or refute the theory
- A scientist puts forward a hypothesis which is capable of refuation
- Economics-the science
- It is not often possible to establish control groups/ set up experiment in environments which enable to be varied whilst other factors are kept constant
- Economists take data from everyday life where the variables can change at any given time period
- Becomes difficult to decide whether the evidence supports or refutes particular hypotheses
- Economists may come to different conclusions from the same set of data as their interpretations may vary
- Economics studies human behaviour which cannot be reduced to scientific laws
- It's hard to understand/predict behaviour of individuals-economics is based on the study of groups pof individuals
- Insufficient data to make firm predictions because variables may change altering the course of events
- Economics studies human behaviour which cannot be reduced to scientific laws
- Economists may come to different conclusions from the same set of data as their interpretations may vary
- Becomes difficult to decide whether the evidence supports or refutes particular hypotheses
- Economists take data from everyday life where the variables can change at any given time period
- It is not often possible to establish control groups/ set up experiment in environments which enable to be varied whilst other factors are kept constant
- Theories and Models
- An economic theory can be expressed in words
- An economic model requires great precision in their specification and therefore expressed in mathematical terms
- Theories and models are a simplification of reality (simple) = useful
- The ceteris paribus (all other things being equal) assumption is used when building models; the theory relies on external factors not changing or interfering
- An economic model requires great precision in their specification and therefore expressed in mathematical terms
- An economic theory can be expressed in words
- Positive and Normative
- Positive economics deals with statements of 'fact' which can be supported or refuted by evidence.
- Statements about the future can be positive but economists have to wait for evidence
- Normative economics deals with value judgements; cannot be proved or disproved by evidence
- Opinions about how economies and markets should work
- Normative economics typically contains positive economics
- Positive economics deals with statements of 'fact' which can be supported or refuted by evidence.
- The Scientific Method
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