Cards (47)

  • What is Methodology?

    methods, how we do our research
  • What is Model?

    representation of reality, which facilitates understanding of how something works - simplification of reality
  • "A model represents every feature/aspect of the real word."
    False
  • "A model is based on data and facts."
    True
  • What does PPF stand for?

    production possibility frontier
  • PPF - point is in the middle
    diversifying its product
  • PPF - elsewhere (on the line)
    producing at an efficient level
  • PPF - inside
    not efficient - not properly utilising what we have
  • PPF - outside
    unattainable - you cannot get to that point
  • What is Ceteris Paribus?

    term used to describe analysis where one variable in the model is allowed to vary while other are held constant - other things equal
  • "Conclusions drawn with evidence are full and final."
    False
  • What is reasoning?

    one of the ways in which science discovers new knowledge is through asking questions
  • A hypothesis can be made based on how many reasonings?
    2
  • What are the types of reasonings?
    deductive, inductive
  • What is Deductive reasoning?

    known facts/truth - things we know to be true
  • What is Inductive reasoning?

    data, observation
  • When is hypothesis generated? (inductive reasoning)
    after analysing the data
  • "Inductive reasoning does not offer a theory/explanation."
    False
  • What is Experiments in Economics?
    designed to help confirm existing theories and/or develop new ones to explain forces and matter and how the universe began
  • Name me the types of experiments in economics.
    laboratory, natural/field
  • What is laboratory experiment?

    data is collected via observation on individual/group behaviour through asking questions, surveys, interviews
  • "The conclusion may be generalised after a laboratory experiment."
    True
  • What is natural/field experiment?

    the study of phenomena, determined by natural condition where the experimenter is not in the control
  • Queen's Victoria's age experiment - why was there such a big age difference?
    anchoring effect
  • What is an anchoring effect?

    cognitive bias - people heavily rely on the first piece of information they receive when making a decision
  • What is Theory?

    can be used to explain something and to make prediction
  • "Theory explains a specific topic, that does not have to be necessarily true."
    True
  • What is Falsifiablity?

    the assumption that it is not possible to know the truth of everything, we cannot be 100% sure that these ideas/theories are correct
  • If something has 99% level of significance, what is the percentage of falsifiablity?
    1 %
  • What is the Role of the Assumption?

    assumptions can simplify complex world and make it easier to understand
  • The role of assumption can be a core of which economic methodology?
    neo-classical
  • Name all the schools of thought
    neo-classical, feminist, marxist, Austrian
  • What are the 3 key characteristics of a Neo-classical SoT?
    market is the central feature, rational decision, constrained optimisation problem
  • What is the Constrained Optimisation Problem?

    optimising (finding the best value) while adhering to specific conditions/limitations
  • "Feminist economics do not question the assumptions of the neo-classical SoT."
    False
  • What is the main idea of the Feminist SoT?
    valuation of unpaid work
  • How are firms and markets seen in a Marxist economic?
    a collection of humans
  • Some humans have control over the means of production and can exploit their power, what does it lead to?
    different outcome -> dynamism in economies
  • What is the main idea of the Austrian SoT?
    individual liberty - make it as free as possible
  • What is being maximised and what minimised in an Austrian economic?
    economic well-being x government role