1 / 6

1.4 What Tools do Economists use?

1.4 What Tools do Economists use?. I. The Scientific Method. is used to analyze economic events & predict outcomes and involves: 1. posing a question 2. researching the question 3. developing a hypothesis 4. conducting studies & collecting information 5. analyzing the information

devika
Download Presentation

1.4 What Tools do Economists use?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 1.4 What Tools do Economists use?

  2. I. The Scientific Method • is used to analyze economic events & predict outcomes and involves: 1. posing a question 2. researching the question 3. developing a hypothesis 4. conducting studies & collecting information 5. analyzing the information 6. evaluating the hypothesis

  3. Economists use graphs to analyze the relationship between two sets of data. • Data - factual information that gives you vital insights into the physical world and it’s processes.

  4. II. Graphs: Two-dimensional Representations of a three-Dimensional World

  5. A graph is a visual representation for analyzing and displaying data. (One or both sets of data are also known as variables.) • A variable is a quantity that can vary or change. • Data can be plotted on a coordinate system which consists of two perpendicular lines. Each of the two lines is called an axis. • The horizontal line is called the x-axis. • The vertical line is called the y-axis. • A curve is any line representing data points on the graph.

  6. III. Economic Models: Simplified Representations of Reality • An economic model is a simplified representation of reality that allows economists to focus on the effects of one change at a time. • The rational-behavior model is a tool for understanding the mystery of human behavior. • Forms of economic models include: diagrams, equations and descriptions.

More Related