Question

4. What are the key elements of the scientific method and how does this method relate to economic principles and laws?

5. State (a) a positive economic statement of your choice, and then (b) a normative economic statement relating to your first statement.

6. How does the slope of a budget line illustrate opportunity cost and trade-offs? How does a budget line illustrate scarcity and the effect of limited incomes?

Answer 1

Answer 4;

The key elements of the scientific method are as follows:

a. Observing real-world behavior and outcomes associated with it.

b. A hypothesis a formed using the above outcomes.

c. The outcomes of the specific events are compared to the outcome predicted by the hypothesis formed in the previous step.

d .Based on the results , the hypothesis is either accepted or rejected.

e. If the results are favorable, the hypothesis evolves into a theory.

This is related to the economic law or principle because a theory that develops from the scientific method that is well-tested and widely accepted is referred to as economic law or economic principle.