1.1 Economic methodology
- Created by: CQCharlotteQuinn
- Created on: 25-01-16 10:55
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- 1.1 Economic methodology
- Economics as a social science
- Studies economic behaviour and relationships, between individuals and groups
- individual behaviour e.g. - why people buy more strawberries when the price falls
- Studies economic behaviour and relationships, between individuals and groups
- Economics and scientific methodology
- Demand theory
- 1. Observe consumer 2. Hypothesis on consumer spending 3. prediction formed 4. evidence tests predictions 5. evidence supports hypothesis, theory formed | evidence doesn't support, hypothesis amended or rejected
- Demand theory
- Social sciences and natural sciences
- If theories allow exceptions then they're used to generalise
- Positive economics: what will happen Normative economics: what ought to happen
- If theories allow exceptions then they're used to generalise
- The difference between positive and normative statements
- Normative: value judgement, not refuted by evidence
- Positive: fact, tested to see if correct
- Economics as a social science
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