Ch2 review

Ch2 review - Ch.2HowEconomistWork:51PM 23:12 2.1:...

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Ch. 2 How Economist Work 27/09/09 1:51 PM 23:12 2.1: POSITIVE AND NORMATIVE ADVICE Key to success of scientific inquiry lies in separating positive questions about the way  the world works (matters of fact) from normative questions about how one would like the  world to work. 2.2: ECONOMIC THEORIES Consists of a set of definitions of:      1. The variables to be employed          2. set of assumptions about how things behave          3. conditions under which the theory is meant to aply. Provide conditional predictions of the type “if one event occurs, then another will also  occur.” ‘Model’ is used as a synonym for theory Organizes our thinking. 2.3: TESTING THEORIES Theories are tested by checking predictions vs. evidence. Use statistical analysis (distinction b/w correlation and causation)
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This note was uploaded on 10/19/2011 for the course ECON 101/102 taught by Professor Gateman&neary during the Spring '09 term at UBC.

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Ch2 review - Ch.2HowEconomistWork:51PM 23:12 2.1:...

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