17 Questions
What is the primary goal of the scientific method in economics?
To test hypotheses about how the world works
What is a challenge of conducting experiments in economics?
It is often impractical
What is the role of assumptions in economic scientific thinking?
To simplify the complex world and make it easier to understand
Why do economists pay close attention to natural experiments offered by history?
To substitute for laboratory experiments
What is the purpose of observation in the scientific method in economics?
To test hypotheses about the world
How do different assumptions made by economists affect their analysis?
They are used to answer different questions
What is a key characteristic of economists as scientists?
They devise theories and collect data to analyze.
What do economists use to verify or refute their theories?
Data and the scientific method
What is the primary role of an economist, according to the quote?
Understanding human behavior and society
What is the scientific method used for in economics?
To understand human behavior and test hypotheses
What do economists analyze to verify their theories?
Data collected from observations and experiments
What is the primary purpose of economic models?
To simplify reality to improve our understanding of it
What is a circular-flow diagram?
A visual model of the economy showing how dollars flow through markets
Who are the two main decision makers in the economy?
Firms and households
What are the two markets depicted in a circular-flow diagram?
For goods and services and for factors of production
What is the role of assumptions in economic models?
To eliminate irrelevant details
Why do economists use economic models?
To simplify reality and improve understanding
Learn about the economist's approach to scientific inquiry, including the development and testing of theories, observation, and experimentation. Understand how economists use the scientific method to study the world. Quiz yourself on the basics of economics as a science.
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