Social science - definition
The study of human society and social relationships.
How is economic methodology different to that of a natural science?
Economists can’t control variables like a scientist can in an experiment.
Because economies are dynamic
How do economists test?
Build models to simplify reality
Make a range of assumptions.
Ceteris paribus - defintion
Assuming all other factors will remain constant when analysing the relationship between variables.
Positive statement - definition
Objective, fact based comments that can be tested
Not influenced by opinions of others
Normative statement - defintition
(Value statements)
Subjective, opinion based comments that are difficult to test.
How are policies made based on those types of statements?
Use a combination of both, to predict the impact both economically and use value statements to predict the moral/ social impact.