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Introduction to Economics & Research
Week 2
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Lilly Nguyen
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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
?
know
n
facts/trut
h -
thing
s
w
e know
to b
e 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
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