Professional Documents
Culture Documents
vs. Economic
Theory
Sam D. Fuego
Social Sciences Department
School of Liberal Arts
Ateneo de Zamboanga University
Economic Models
Economic models provide a way to render
Cont.
Model is a formal statement of an economic
theory.
The most common way of expressing these
are in words, graphs, and in equations.
Equation:
Qdx = f (Px)
Economic theory
Is not a fact or law which has been proven.
Is an attempt to establish predictive
Microeconomics vs.
Macroeconomics
Microeconomics deals with the economic
economics.
This is in contrast with normative economics,
which deals with what should be?
To be able to understand and explain
economic events and economic theories, the
student of economics must learn how to use
the basic tools of economics.
logic in order
Economic Logic
Inductive
Particular to general
Deductive
General to particular
Deductions and
Empirical testing
These are hypothesis or
theories presented for
empirical validation. They are
temporary conclusions made
based on ones observations
and are still subject to the
presentation of evidence.
Deductions have to be tested
as to their validity and
correctness. The presentation
of the empirical evidence will
be the basis of rejecting or
accepting a hypothesis.
Assumptions Observation
He should be able to describe the
specific uses of the study and
peripheral conditions which affect
the economic behaviors which are
being studied.
Scientific approach
End