Introduction to Economics

It aims to explain how people deal with the phenomenon of scarcity.

Circularity refers to a situation where a statement and its proof support each other in a complex chain of arguments.

Ockham’s razor states that among competing models, the one with the fewest assumptions should be selected.

<p>Macroeconomics studies economic phenomena at the aggregate level, while microeconomics studies individual decision-making.</p> Signup and view all the answers

<p>Opportunity cost is defined as the next best alternative forgone of one’s choice.</p> Signup and view all the answers

<p>The trilemma suggests there are three ways to deal with the need for proof in scientific reasoning: infinite regress, circularity, or dogmatism.</p> Signup and view all the answers

<p>Methodological individualism requires social phenomena to be explained with reference to individual behavior.</p> Signup and view all the answers

<p>Critical rationalism holds that scientific theories can never be verified but can be falsified by conflicting empirical evidence.</p> Signup and view all the answers

<p>Western economics focuses on increasing means to alleviate scarcity, while Buddhism emphasizes overcoming desires to better match means with wants.</p> Signup and view all the answers

<p>Homo Oeconomicus suggests individuals make decisions aiming to maximize their utility, demonstrating consistent ranking among alternatives.</p> Signup and view all the answers

<p>The conditions are completeness, transitivity, and stability over time.</p> Signup and view all the answers

<p>Marginal utility refers to the additional satisfaction gained from an extra unit of donation, which decreases as more is donated.</p> Signup and view all the answers

<p>Digressions allow for exploration of complex ideas and alternative perspectives that enrich the study of microeconomics.</p> Signup and view all the answers

<p>Normative science involves value judgments and prescriptive statements about economic policies, whereas positive science focuses on objective analysis and facts.</p> Signup and view all the answers

<p>Language can limit the expression and understanding of the complex realities involved in economic concepts.</p> Signup and view all the answers

<p>'Generosity for nerds' refers to the idea that higher earnings can enable individuals to donate more, illustrating the trade-offs involved in choosing how to use personal resources.</p> Signup and view all the answers

<p>Scarcity refers to a situation where wants exceed available resources.</p> Signup and view all the answers

<p>Positive theories aim to explain phenomena without value judgments, while normative theories prescribe actions based on value judgments.</p> Signup and view all the answers

<p>The three levels of study are microeconomic, interaction, and macroeconomic levels.</p> Signup and view all the answers

<p>A model is a collection of assumptions and hypotheses linked by logic and mathematics used to simplify and analyze economic phenomena.</p> Signup and view all the answers

<p>Infinite regress refers to a scenario where every proof requires further proof, leading to an endless chain of propositions.</p> Signup and view all the answers

<p>A paradigm is a set of practices that characterizes a scientific discipline during a specific time period.</p> Signup and view all the answers

<p>Positive economics focuses on explaining how individuals and societies deal with scarcity without making value judgments.</p> Signup and view all the answers

<p>The three types of propositions are analytic (e.g., '2 + 2 = 4'), synthetic (e.g., 'The bottle is blue'), and normative (e.g., 'This coffee tastes good').</p> Signup and view all the answers