economics as a social science

Question 1

Ceteris Paribus

Answer 1

All else constant. Assumption whilst the effect of a change in 1 variables are being investigated, all variables are kept constant.

Question 2

Normative statement

Answer 2

Statement based on valued judgment therefore can’t be proven as true or false.

Question 3

Positive statement

Answer 3

Statement that can be proven as true or false, not based on valued judgment.

Question 4

Normative statement example

Answer 4

The government should provide basic healthcare to all citizens.
- Gov makes valved judgements on eon issues & involvement in economy depends on normative issue

Question 5

Positive statement example

Answer 5

The demand for a good will increase if its price decreases.

Question 6

Social science

Answer 6

Study of human
- how scarce resources are allocate to unlimited wants
- Simplify reality by adopting ceteris paribus → focus on RS between 2 variables - NO change in influencies variable
- Study now econ agents make decisions

Question 7

Theories & models use

Answer 7

Explain econ behaviour & decision making process