ECON 1B03 Lecture Notes - Lecture 2: Efficient-Market Hypothesis, Opportunity Cost, Scientific Method
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ECON 1B03 Full Course Notes
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Expressing ideas in economies can vary through: the english language. People buy less tea when the price of tea rises : algebra/equations, diagrams/graphs. Quantity = 1000 2(price of tea) Science: use the scientific method to: 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 statements: attempt to describe the world as it is: or descriptive statements, usually scientists use positive statements, these statements can be proven by data, or prescriptive statements, policy advisors make normative statements. Normative statements: attempt to describe the world as it should be. The ontario government was correct in introducing a ban on smoking in public places . This is a normative statement because it"s a judgement or opinion. The ban on smoking in public places in ontario has reduced tobacco use .