1.1.1 economics as a social science Flashcards
1.1 what is the nature of economics?
1
Q
what is a model?
A
a theoretical concept that looks at how differwnt variables interact
2
Q
what data do economic model use?
A
Qualitative (opinion) and statistical data
3
Q
what assumptions are made when making economic model?
A
- economic agents are rational and their preference or choices reflect this
- consumers wish to maximise utility
- producers wish to maximise profit
4
Q
what is Ceteris Paribus?
A
all factors stay the same in an economical model
5
Q
what does Ceteris Paribus help let us achieve?
A
how the change in one variable will lead to a change in a second variable
6
Q
elements of a natural science test are…
A
STATIC (do not change)
7
Q
in a social science, elements of the social test are…
A
DYNAMIC
