Economics as a social science

• What do economists develop to explain how the economy works?

  Models
• How are economic models developed?


  By putting forward a model, gathering evidence, and then accepting, changing, or disregarding the model
• Can the words "theory" and "model" be used interchangeably in economics?

  Yes
• What is the main difference between theories and models in economics?

  Theories can often be expressed in words, while models are expressed in mathematical terms
• Why are theories and models simplified in economics?

  To make them more useful
• Why must assumptions be made in economic models?

  Because there are too many variables that can change within an economic model
• What does the term 'ceteris paribus' mean?


  All other things remaining equal
• How do economists use the term 'ceteris paribus' in their analysis?


  To simplify the problem by holding other variables constant
• What is a key challenge in economics compared to natural sciences?

  It is difficult to set up experiments to test hypotheses due to changing variables
• What are theories or models that gain universal acceptance called?


  Laws
• Why do some people argue that economics is not a science?

  Because it studies human behavior, which cannot be reduced to scientific law
• How do groups of individuals relate to the predictability of economic behavior?


  Groups are much more predictable than individuals
• What is a key assumption that economists make when analyzing events?


  That events occur with ceteris paribus
• What is the purpose of building models in economics?


  To better understand certain interactions within societies
• What is a model in economics?

  A simplified version of reality
• What should be considered when evaluating different economic models?

  The underlying assumptions
• How do economists decide which variables to include or exclude in their studies?


  By providing justifications for their decisions
• What is the difference between correlation and causation in economics?

  Correlation indicates a relationship, but causation implies one variable directly affects another
• Why might two economists analyzing the same data reach different conclusions?

  Due to the different variables each economist chooses to focus on
• What principle do economists use to create models due to the complexity of variables?


  The principle of ceteris paribus
• What does empirical research in economics involve?

  Collecting data through observations, surveys, and opinion polls
• What happens to the results of a hypothesis when conducted by different researchers?

  The results can vary significantly
• When are economic models developed by economists?

  Once a hypothesis has been repeatedly proven or rejected in different circumstances