-2 Different explanatory frameworks in Economics

the study of how society makes choices in managing its scarce resources and the consequences of this decision-making, based on math to abstract from the complexity of the real world

rational, autonomous, self-interested agents; make decisions in order to maximize utility or profit

scarcity (choice), opportunity cost (trade offs), marginal thinking, incentives

Claims that attempt to understand the world as it is

Based on a particular theory of science, logical positivism, accepts other approaches

Empirical evidence and critical interrogation, uses difference theoretical lenses, focuses on the questions the researcher asksE

study of knowledge and justified beliefMe

everything about methods, hypothesis, etc.A

heuristics - solving problems by your experiences

deals with the analytical, political and moral questions arising at the intersection between economy and society

Multi-disciplinary, multi-perspectives

economic decisions have political and moral implications, economy is not a level playing field

does not believe that economy is an independent entity and so cannot be studied in isolation

Different actors can skew political decisions in their avor

they are shaped by the environment, and cannot be reduced to the level of the individual

Behaviour of entities being explained in terms of the behaviour of other kind of entities