Unit 1 Flashcards Preview

Introduction to markets and market failure > Unit 1 > Flashcards

Flashcards in Unit 1 Deck (9)
Loading flashcards...
1
Q

Explain the meaning of ceteris paribus.

A

All things being equal, the assumption that whilst a change in one variable is being investigated, all other variables are kept constant.

2
Q

What is normative economics?

A

Normative economics is the study and presentation of policy prescriptions involving value judgements about the way in which scarce resources are allocated.

3
Q

What is positive economics?

A

Positive economics is the scientific or objective study of the allocation of resources.

4
Q

What is a normative statement?

A

A normative statement is a statement which cannot be supported or refuted because it is a value judgement.

5
Q

What is a positive statement?

A

A positive statement is a statement which can be supported or refuted by evidence.

6
Q

Define social science.

A

Social science is the study of societies and human behaviour using a variety of methods including the scientific method.

7
Q

What is the scientific method?

A

The scientific method subjects theories or hypotheses to falsification by empirical evidence.

8
Q

What is a theory or model?

A

This is a hypothesis which is capable of refutation by empirical evidence.

9
Q

Define law in an economics sense?

A

Law is a theory or model which has been verified by empirical evidence.