The Nature of Economic Reasoning
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4 Terms
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Economics as a science (4) (1)(3)
models in economics as in any science
building models
evidence and induction
using models
explanation
deduction
importance of assumptions
assessing models
2
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Economics as a social science (3)
difficulties in conducting controlled experiments in many parts of the subject
problems of predicting human behaviour (people react)
behavioural economics
3
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Economics and policy (2)
positive and normative economics
the role of the economist in policy making
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