Economics is no different. Supply, demand, elasticity, comparative advantage, consumer surplus,deadweight loss--these terms are part of the economist ’s language. In the coming chapters, youwill encounter many new terms and some familiar words that economists use in specialized ways.(1)At first, this new language may seem needlessly arcane. But, as you will see, its value lies in itsability to provide you a new and useful way of thinking about the world in which you live.
Economists try to address their subject with a scientist ’s objectivity. They approach the studyof the economy in much the same way as a physicist approaches the study of matter and abiologist approaches the study of life: (2)They devise theories, collect data, and then analyze thesedata in an attempt to verify or refute their theories.
To beginners, it can seem odd to claim that economics is a science. After all, economists donot work with test tubes or telescopes. (3)The essence of science, however, is the scientificmethods--the dispassionate development and testing of theories about how the world works.
This method of inquiry is as applicable to studying a nation ’s economy as it is to studying thearth’s gravity or a species ’ evolution. (4)As Albert Einstein once put it, “The whole ofnothing more than the refinement of everyday thinking. ” (225words)
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