Exam 1- Terms to know - What is economics The study of how...

Info icon This preview shows pages 1–2. Sign up to view the full content.

What is economics? The study of how people make decisions or choices when faced with scarcity Steps to an Economic Scientific Method 1) We have a question we want to answer 2) We must engage in hypothesis and observation of the world around us 3) We need to test our hypothesis 4) We may need to go back and revise our original hypothesis based on results Normal good Goods that people buy more of when they experience an increase in income Inferior good Goods that people buy less of when they experience an increase in income Behavioral Economics Combines psychology and brain imaging with economics in an attempt to better understand this decision-making process and better improve our rules equations and the predictive ability of our models Positive Statement One, which is testable and provable Normative Statement One that is not potentially testable or provable. It is a statement that is subjective. It is a statement of what we thing should be, ought to be, would be good, would be bad, etc.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern