ECON 319 Midterm: Econ 319 Midterm 2 Review.docx
Document Summary
Political economy threats humans solely as a being who desires to posses wealth, one who is capable of judging the comparative efficacy of means of obtaining that end. Political economy takes notice of actions in which the acquisition of wealth is the main end. Law of composition of causes: the law that the joint effect of several causes is identical with the sum of their separate effects . A posteriori method: requires, as the basis of its conclusions specific experience. It can be used for verifying truth but not discover it. A posteriori method is part of the application of the science but not of the science. A priori method: reasoning from an assumed hypothesis much like mathematics. The method a priori is the legitimate method for political economy. We must reason from assumptions and not from facts. Assumptions of political economy are true only in the abstract.
