1: Economics as a Social Science

What is the scientific method?

A scientist:

Postulates - Puts forward a theory

Gathers evidence to support the theory

Accepts, modifies or refutes the theory

What is ceteris paribus?

All things being equal

The assumption that, whilst the effects of a change in one variable are being investigated, all the other variables are kept constant

Law

A theory or model which has been verified by empirical evidence

Normative economics

The study and presentation of policy prescriptions involving value judgements about the way in which scarce resources are allocated

Normative statement

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

Positive economics

The scientific or objective study of the allocation of resources

Positive statement

A statement which cannot be supported or refuted by evidence

Scientific method

A method which subjects theories or hypotheses to falsification 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 which is capable of refutation by empirical evidence