1 Economics as a social science

Question 1

Ceteris paribus

Answer 1

All things being equal

the assumption that, whilst the effects of a change in one variable are being investigated, all other variables are kept constant.

Question 2

Normative statement

Answer 2

A statement which cannot be supported or refuted because it is a value judgement.

Question 3

Positive statement

Answer 3

A statement which can be supported or refuted by evidence.

Question 4

Value judgement

Answer 4

A view of the rightness or wrongness of something, based on a personal view.

Question 5

Microeconomics

Answer 5

Study of economics at the level of the individual firm, industry or consumer/household.