Economics as a Social Science Flashcards
1
Q
What does ceteris paribus mean?
A
Other things being equal. It is an assumption used in economic model to examine the effect of one factor on the economy, when all other factors remain equal.
2
Q
What is an economic model?
A
A simplification of economic reality, used to explain concepts and test theories.
3
Q
What is economics?
A
The study of how people satisfy unlimited wants with scarce resources.
