Chapter 2

• Why is the language of economics considered specialized?

  Because it includes terms like supply, demand, and elasticity
• What does the term "cognitive dissonance" relate to?


  It is a concept used in psychology
• What is the significance of learning the economist's language?


  It provides a new and useful way of thinking about the world
• How do economists approach their subject?


  With a scientist’s objectivity
• What is the essence of science according to the text?

  The scientific method involves developing and testing theories
• How do economists use the scientific method?


  They devise theories, collect data, and analyze it to verify or refute theories
• What challenge do economists face compared to physicists?


  Conducting experiments is often impractical in economics
• What do economists rely on instead of laboratory experiments?


  Natural experiments offered by history
• Why are historical episodes valuable for economists?

  They provide insight into past economies and illustrate current theories
• What role do assumptions play in economic analysis?


  They simplify complex problems to make them easier to understand
• How do economists use different assumptions?


  To answer different questions effectively