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Unformatted text preview: economic theories---a look at the methodology of economics. That methodology is the same scientific methodology used in all sciences---it is the process of induction and deduction. Theories can be expressed: 1) verbally, or in written form, 2) as a numerical table, 3) graphically, or 4) mathematically. Theories are helpful to understanding the relationship between economic variables but should be used with caution. Two common pitfalls to clear thinking are the failure to understand the ceteris paribus assumption and confusing association and causation . This chapter concludes with a review of careers in economics. The appendix to this chapter focuses on how theories can be expressed graphically. Graphs are visual aids that help us see the direct or inverse relationship between two or more sets of data or variables....
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This note was uploaded on 03/19/2011 for the course ECON 302 taught by Professor Wroee during the Spring '08 term at American River.
- Spring '08