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

The study of how individuals and societies make choices under conditions of scarcity.

A reasonable, testable explanation for a phenomenon that can be supported or rejected by evidence.

Statements about what is, based on observation and evidence.

Statements about what should be, based on values and judgments.

A situation where wants exceed the available resources.

A simplified representation of a real-world situation, used to understand and predict outcomes.

A set of accepted practices and assumptions that defines a scientific discipline at a particular time.

A never-ending chain of proofs, where every proof relies on another proposition that needs further proof.

The study of how individuals and businesses make decisions under conditions of scarcity.

A branch of economics focused on understanding how individuals make choices when resources are limited. It aims to predict outcomes and make recommendations.

A branch of economics concerned with what should be, based on values and beliefs. It deals with ethical and ideological questions.

The idea that individuals act in a way that maximizes their own self-interest, given their constraints and preferences.

A model of how individuals choose between different options based on their preferences, assuming they always aim for the greatest satisfaction.

The value of the next best alternative foregone when making a choice. For example, the salary you could have earned by working instead of attending a concert.

The idea that individuals can rank their preferences consistently and that these rankings remain stable over time.

The belief that individuals always choose the option that brings them the greatest possible satisfaction, given their constraints and preferences.

The scientific position that all social phenomena must be explained by referring to individual behavior.

A concept that states that, among competing explanations, the one with the fewest assumptions should be preferred.

The idea that scientific theories can't be proven true, but can be falsified by conflicting evidence.

A situation where the proof of a proposition relies on the proposition itself, creating a circular argument.

Describes the three ways to address the problem of infinite regress in scientific proofs: infinite regress, circularity, or dogmatism.