Economic Methodology Flashcards
1
Q
What type of science is economics?
A
Economics is a social science
2
Q
What is Ceteris Paribus
A
Ceteris Paribus is latin for all other things held constant, only one factor is changing
3
Q
Why do economists assume Ceteris Paribus?
A
Assuming Ceteris Paribus means economists can focus on the effects of one factor alone
4
Q
Definition of a social science
A
Social science is the scientific study of societies and social interactions.
5
Q
Why do economists use economic theories?
A
To explain economic behaviour
6
Q
What are the four steps to making an economic theory?
A
1) observation
2)forming a hypothesis
3) predictions
4) test predictions
