MGT Notes

Reference, ‘Principles of Economics,’ by N. Gregory Mankiw, 3e, Pg 15

The study of economics closely follows the scientific method: economists devise theories, collect data and analyze the data to verify or refute their theories. Thus the study of economics is aproached with a scientists’ objectivity. Also, just like a field of science such as physics, economics has its own language. Examples of terms commonly used are supply, demand, comparative advantage, consumer surplus and deadweight loss.