ECO 1104 Lecture Notes - Lecture 2: Department Of Finance Canada, Global Affairs Canada, Environment And Climate Change Canada

• School: University of Ottawa
• Department: Economics
• Course: ECO 1104
• Professor: Lawrence Harris

Document Summary

E(cid:272)o(cid:374)o(cid:373)ists try to address their su(cid:271)je(cid:272)t (cid:449)ith a s(cid:272)ie(cid:374)tist"s o(cid:271)je(cid:272)ti(cid:448)ity. The scientific method involves observation, theory and more observation. Economists use theory and observation like other scientists, but do they face an obstacle that makes their task especially challenging: Assumptions can simplify the complex world and make it easier to understand. The art in scientific thinking is deciding which assumptions to make. Economists also use models to learn about the world that are most often composed of diagrams and equations. Positive statement: claims that attempt to describe the word as it is. Canada employs economists to collect data analyzed by other economists and then give policy advice. Any economist who advises government knows that his or her recommendations are not always heeded. In the real world, figuring out the right policy is only part of the job for the government.