Week 2

• 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