-2 Different explanatory frameworks in Economics

Neoclassical definition of Economics

Neoclassical definition of Economics

the study of how society makes choices in managing its scarce resources and the consequences of this decision-making, based on math to abstract from the complexity of the real world

Core models of contemporary neoclassical economics

rational, autonomous, self-interested agents; make decisions in order to maximize utility or profit

Neoclassical economics deals with

scarcity (choice), opportunity cost (trade offs), marginal thinking, incentives

Positive statements

Claims that attempt to understand the world as it is

Neoclassical economics

Based on a particular theory of science, logical positivism, accepts other approaches

Neoclassical economics and making sense or reality

Empirical evidence and critical interrogation, uses difference theoretical lenses, focuses on the questions the researcher asksE

Epistemology

study of knowledge and justified beliefMe

methodology

everything about methods, hypothesis, etc.A

Axiology

heuristics - solving problems by your experiences

Socioeconomics

deals with the analytical, political and moral questions arising at the intersection between economy and society

Socioeconomics features

Multi-disciplinary, multi-perspectives

Socioeconomics and ethics

economic decisions have political and moral implications, economy is not a level playing field

Socioeconomics and independent study of economics

does not believe that economy is an independent entity and so cannot be studied in isolation

Socioeconomics and power

Different actors can skew political decisions in their avor

Socioeconomics and individual preferences

they are shaped by the environment, and cannot be reduced to the level of the individual

Methodological reductionism

Behaviour of entities being explained in terms of the behaviour of other kind of entities