1.1.1 Economics as a social science

                                                                       Economics as a social science

Thinking like an economist

Economics is considered to be a social science as it looks at the behaviour of humans.

Methodology in economics is similar to natural science, (e.g. Biology).

Economists develop models to explain how the economy works, models will use qualitative information & statistical data to use the theoretical thought process, Models often use empirical (real-world) information to help evidence outcomes, this allows the economist to observe how a change in one variable will impact on other variables, there are too many variables which can change within an economic model and so assumptions must be made.

Ceteris Paribus

Unlike natural sciences, economists can’t conduct controlled experiments, where only one variable is changed…