Positive Economics and the Scientific Method
Economic Methodology and the Evolution of Economic Thought
AO2
Syllabus requirement
Explains the use of logic, hypotheses, models, the ceteris paribus assumption, empirical evidence, and refutation in building economic theory.
Assessment objectives
AO2 Application and Analysis
Summary
This topic explains positive economics and how the scientific method is used to produce objective, testable statements about economic behaviour. It describes how economists form hypotheses, build simplified models using assumptions like ceteris paribus, gather empirical evidence, and accept that refutation and revision are part of developing reliable economic theories.