introduction to economics

Question 1

Economics agent

Answer 1

The major groups involved in economic activity: consumers, producers (businesses) and the government

Question 2

Positive statement

Answer 2

Objective statements of fact which can be tested using evidence. This means that it can be verified to be true or false

Question 3

Normative statement

Answer 3

A subjective opinion

Question 4

Social science

Answer 4

When observations are made of human behavior and then theories are made around these observations

Question 5

Ceteris paribus

Answer 5

all other things remaining equal

Question 6

Value judgements

Answer 6

An evaluative statement (based on a normative/subjective statement ) of how good or bad a person considers an idea or action is . we need to make value judgements when making economic choices

Question 7

Economic model

Answer 7

An economic model is about building a hypothesis about behavior that can be tested, supported, amended or rejected.