CAS EC 101 Quiz: Thinking like an economist.docx

• School: Boston University
• Department: Economics
• Course: CAS EC 101
• Professor: All

Document Summary

The scientific method: observation, theory, and more observation: economist use theory and observation like other scientists, but unlike scientists, they cannot conduct experiments, must pay close attention to history. The role of assumptions: economists make assumptions because they simplify the complex world. Economic models: economic models made from equations and diagrams, omits details to highlight what is important. Microeconomics and macroeconomics: microeconomics: study of how households and firms make decisions and how they interact in specific markets, macroeconomics: study of economy-wide phenomena. Positive statements are descriptive, make claim about how the world is. Normative statements are prescriptive, make claim about how the world ought to be. Why economists disagree: economists may disagree abt the validity of alternate positive theories abt how the world works, economists may have different values and therefore different normative views abt what policy should try to accomplish.