Ch2 Thinking Like Economist

Ch2 Thinking Like Economist - Chapter 2: Thinking Like and...

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Chapter 2: Thinking Like and Economist The Economist as a Scientist Look at society through eyes of a scientist Economist play two roles: 1. Scientists: try to explain the world 2. Policy advisors: try to improve the world In the first, economists employ the scientific method the dispassionate development and testing of theories about how the world works Economist focus in one area and test the theory by collecting and analyzing data Conducting experiments can be difficult and even impossible They pay attention to natural experiments played by history Events provide opportunities to study effects of the world’s economy Insight on the past help provide theories of the present The Roles of Assumption Assumptions simplify the complex world; it makes it easier to understand Example: To study international trade, assume two countries and two goods Focuses on what needs to be studied We use information we know to assume; ex: Price Changes Economic Models
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This note was uploaded on 01/08/2012 for the course EC 101 taught by Professor Idson during the Fall '08 term at BU.

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Ch2 Thinking Like Economist - Chapter 2: Thinking Like and...

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