Reading questions 1. What is economics?
A. Knowledge and Comprehension
1. What is economics, according to Samuelson?
Economics is a wild field that studies (among other things) how people and society exchange
transactions, choose to use scarce or limited resources, live their economic/business life, and
how to improve society and wealth.
Samuelson believes economics is a wild field and he gives these definitions:
Exchange transactions among people
The study of how to improve society
How people earn and enjoy a living
The study of wealth
How people organize production and consumption activities
How people choose to use limited resources
2. Explain, in your own words, what a school of economic thought is.
A group of economists who share the same opinion on a question or subject (common
perspectives, practices, or beliefs), since not all economists are united in what are the most
relevant and urgent topics.
3. Is economics multidisciplinary, according to Samuelson? If so, in what way?
Economics is multidisciplinary because hard science is combined with humanity, situations
can’t be viewed from a solely economic view, at least one other (academic) discipline is
involved, like sociology (the humanity part), politics, psychology, anthropology, history and
you need statistics and mathematics to understand and/or illustrate a situation.
4. Are there other quotes or authors used in the lecture that show economics as
multidisciplinary? Briefly compare their view to Question 1.
Marked turquoise
Keynes agrees, as quoted in the lecture.
5. What aspects of economics characterize it as a science? Use both arguments from the lecture
and from Samuelson to formulate an answer.
Economics should be studied long and careful, otherwise the wrong conclusions may be
made.
Economics is not as good at ‘holding all things constant’ as you would in a laboratory.
But, in every science there is a need to simplify and abstract situations and outcomes of
experiments to make conclusions, just as in the economic field.
The lecture experiments should have a general outcome as solution for a problem, which
is assured. In economics however, there are multiple approaches to a problem which leads to
different solutions as an outcome.
Positive science vs Normative science setting a ‘norm’
Concerned with ‘what is’ Concerned with ‘what ought to be’
Facts, objectivity, description Values, subjectivity, prescription
Economics can be an art as it is an application, practice or actual policy-making of knowledge
A. Knowledge and Comprehension
1. What is economics, according to Samuelson?
Economics is a wild field that studies (among other things) how people and society exchange
transactions, choose to use scarce or limited resources, live their economic/business life, and
how to improve society and wealth.
Samuelson believes economics is a wild field and he gives these definitions:
Exchange transactions among people
The study of how to improve society
How people earn and enjoy a living
The study of wealth
How people organize production and consumption activities
How people choose to use limited resources
2. Explain, in your own words, what a school of economic thought is.
A group of economists who share the same opinion on a question or subject (common
perspectives, practices, or beliefs), since not all economists are united in what are the most
relevant and urgent topics.
3. Is economics multidisciplinary, according to Samuelson? If so, in what way?
Economics is multidisciplinary because hard science is combined with humanity, situations
can’t be viewed from a solely economic view, at least one other (academic) discipline is
involved, like sociology (the humanity part), politics, psychology, anthropology, history and
you need statistics and mathematics to understand and/or illustrate a situation.
4. Are there other quotes or authors used in the lecture that show economics as
multidisciplinary? Briefly compare their view to Question 1.
Marked turquoise
Keynes agrees, as quoted in the lecture.
5. What aspects of economics characterize it as a science? Use both arguments from the lecture
and from Samuelson to formulate an answer.
Economics should be studied long and careful, otherwise the wrong conclusions may be
made.
Economics is not as good at ‘holding all things constant’ as you would in a laboratory.
But, in every science there is a need to simplify and abstract situations and outcomes of
experiments to make conclusions, just as in the economic field.
The lecture experiments should have a general outcome as solution for a problem, which
is assured. In economics however, there are multiple approaches to a problem which leads to
different solutions as an outcome.
Positive science vs Normative science setting a ‘norm’
Concerned with ‘what is’ Concerned with ‘what ought to be’
Facts, objectivity, description Values, subjectivity, prescription
Economics can be an art as it is an application, practice or actual policy-making of knowledge
