ECON 1000 Lecture Notes - Lecture 2: Rent Regulation, Demand Curve, Scientific Method
11 Apr 2016
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Document Summary
Naked economics: 1-6, 8, 9, 12 are microeconomics. The scientific method involved observation theory, and more observation. Economics use theory and observation like other scientists but they do face an obstacle that makes their task challenging: Dev theories, to explain what observing, prove through observations. Ex. increase min wage by x, unemployment changes by y. Experiments are often difficult in economics (can"t test; create inflation to see, no), not really experimental economics (more deductive, deal with what world gives you) Like other sci areas, econs use models to learn ab the word. Most often composed of diagrams and equations. By making simplifying assumptions, models omit many details to make the world easier to understand and to allow us to see what is truly important. Simplification of world (distill reality to essence (what you can test, look at, analyze), with respect to issue looking at) Key is deciding which assumptions to make. Diff to understand macro w/out micro but separate.
