ECON2004 Study Guide - Final Guide: Price Floor, Externality, Opportunity Cost
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They devise theories, collect data and then analyse these date in an attempt to verify or refute their theories. testing of theories about how the world works. Economists try to tackle their subject with a scientist(cid:495)s objectivity. Essence of science is the scientific method the dispassionate development and. Albert einstein: (cid:494)the whole of science is nothing more than the refinement of everyday thinking. (cid:495) an obstacle that makes their task especially challenging experiments are often. The scientific method: observation, theory and more observation: Interplay between theory and observation occurs in the field of economics. Although economists use theory and observation like other scientists, they do face. Economists, like astronomers and evolutionary biologists, usually have to make do difficult in economics. with whatever data the world happens to give them. To find a substitute for laboratory experiments, economists pay close attention to the natural experiments offered by history.
