ECON-101 Lecture Notes - Lecture 2: Scientific Method, Agricultural Subsidy, Department Of Finance Canada
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31 Mar 2016
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The economist as scienist economists try to address their subject with a scienist"s objecivity. Two economic models will be used to answer these two quesions. An economic model is a simple representaion of something complex. It provides us the main features of what we want to examine in an economy. The scieniic method: observaion, theory, and more observaion. Circular low diagram: a visual model of the economy that shows how dollars low through markets among households and irms. Households buy and consume goods and services in the markets for goods and services. They own and sell factors of producion in the markets for factors of producion. Firms produce and sell goods and services in the markets for goods and services. They hire and use factors of producion in the markets for factors of producion. Idenify the parts of the circular-low diagram immediately involved in the following transacions: mary buys a car from general motors for .
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A- market
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Question 30. 30. For economists, statements about the world are of two types: |
A- assumptions and theories.
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