AS Economics as a Social Science

ceteris paribus

all things being equal; the assumption that while the effects of a change in one variable are being investigated, all other variables are kept constant

disposable income

the amount of money you have left to spend after you have paid your taxes, bills, etc.

empirical

based on scientific testing or practical experience, not on ideas

good

a thing that is produced in order to be sold

hypothesis (pl. hypotheses)

an idea that is suggested as an explanation for something but that has not yet been proves to be true

inequality

an unfair situation in which some groups in society have more money, opportunities or power than others

law

a theory or model that has been verified by empirical evidence

normative economics

the study and presentation of policy prescription involving value judgements about the way in which scarce resources are allocate

normative statements

statements that cannot be supported or refuted because it is a value judgement

positive economics

the scientific or objective study of the allocation of resources

positive statements

statements that can be supported or refuted by evidence

production possibility frontier

shows how much an economy can produce given existing resources

scientific method

a method that subjects theories or hypotheses to being disproved by empirical evidence

social science

the study of societies and human behaviour using a variety of methods, including the scientific method

theory or model

a hypothesis that is capable of being refuted by empirical evidence