AP Econ Chapter 2 outline
Subject:
Economics [1]
2: Thinking Like an Economist Intro economics can be thought of as a science scientific method: ? the dispassionate development and testing of theories about how the world works: The Economist as Scientist The Scientific Method: Observation, Theory, and More Observation economist can observe whats going on around him, then make theories based on that will collect data from all over to test his theory harder for economists to make experiments, have to just use whats given to them rely strongly on examples in history The Role of Assumptions assumptions can simplify complex ideas and make them easier to understand or give you a better idea of the complex idea different assumptions for different situations short term =prices stay the same long term= prices are flexible