Chapter 1 - Economic as social science Flashcards
Introduction (6 cards)
1
Q
What is hypothesis?
A
an idea that is suggested as an explanation for something but has not been proven to be true.
2
Q
What is economic?
A
Social science , . may have different conclusion. It is a study of allocating scare resources in the economy to meet unlimited wants.
3
Q
Theories
A
can be expressed in words
4
Q
Models
A
Mathematical terms.
5
Q
What are Models for? and Purpose?
A
To simplify and analyze complex economic situations
A model has to be useful and simple.
6
Q
Simplifications in modelling?
A
- Assumption (isolate one variable)
- Ceteris Paribus (all other things remain constant)
