Business Administration - Accounting & Financial Planning ECN502 Study Guide - Winter 2018, Comprehensive Midterm Notes - Gross Domestic Product, Inflation, Demand Curve
12 Oct 2018
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Incomes generated: owners of resources receive income for the use of resources. Wages and salaries (w): income from labour. Interests and dividends (i) : income from financial. Total income = r + w + i + capital. Economics as a science: the scientific method, economic methodology (model building) Economics as a science given economic phenomenon: economists follow the scientific method to investigate a, the scientific method: a way of acquiring knowledge, the elements of the scientific method are: based on facts. The methodology of economics phenomena by using economic models: economists attempt to understand complex economic, an economic model: a simplification of economic reality. An abstraction, not a replication of an aspect of the economy. The methodology of economics: parts of an economic model are: Components of a model: definition: the meaning of a term or a concept used in, assumptions: the conditions under which the model the model works. Assumptions: essential assumptions of a model include:
