ECON 1B03 Study Guide - Final Guide: Prairie Dog, Political Philosophy, Positive Statement

• School: McMaster University
• Department: Economics
• Course: ECON 1B03
• Professor: Aleksandra Gajic

Document Summary

English language: people buy less coffee when price of coffee rises. Algebra/equations qd (quality demand) = 1000 2(price of coffee) Social: people, science: use scientific method (observe, theorize, test theory) When economists are trying to explain the world, they are scientists. When economists are trying to change the world, they are policy advisors. Positive statement: attempt to describe the world as it is scientists, can prove or disprove. Normative statement: attempt to describe how the world should be, trying to apply change / remedy something should, ought to policy advisors example: An increase in the minimum wage will cause a decrease in employment among the least- skilled o. Positive: can collect data on increase in minimum wage and can look at income level can be proved. The income gains from a higher minimum wage are worth more than any slight reductions in employment o. Normative: more opinion based possible to agree/disagree about what you value more.