Errors or Pitfalls: In modern times, economics is no doubt being developed on a positive scientific basis. But unlike other physical sciences , economics suffers from a certain weakness. It is after all a science based on human behavior which is not predictable. This makes economic analysis less accurate. There are a variety of other empirical and technical reasons that contribute to its inaccuracy. Most of the economic theories are tailor-made to suit competitive market conditions. But the markets in reality are likely to consist of imperfections. The knowledge of the economic agents, the mobility of resources, the availability of information, future uncertainties, changes in tastes and technical conditions are some of the causes of imperfection in the market system. A technical error arises out of the statistical and theoretical tools employed. In algebraic and geometric methods the
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This note was uploaded on 12/28/2011 for the course ECO 101 taught by Professor Staff during the Fall '10 term at Texas State.