Добавил:
Upload Опубликованный материал нарушает ваши авторские права? Сообщите нам.
Вуз: Предмет: Файл:
SW (gotovaya shpargalka).docx
Скачиваний:
0
Добавлен:
01.07.2025
Размер:
229.41 Кб
Скачать

12. Describe abstraction as a method of economic research.

An abstract is a concise summary of a larger project (a thesis, research report, performance, service project, etc.) that concisely describes the content and scope of the project and identifies the project’s objective, its methodology and its findings, conclusions, or intended results.

ABSTRACTION:→Simplifying the complexities of the real world by ignoring (hopefully) unimportant details while doing economic analysis. Abstraction is an essential feature of the scientific method. Hypothesis verification, model construction, and comparative static analysis are not possible without abstraction.

Abstracting from the details of the real world is essential to the study of economics and any other scientific endeavor. The scientific method would not, could not, exist without abstraction. For example, a market graph is NOT an actual market. It merely represents market activity. Analyzing price changes are easier with the abstraction of a market model.

Abstraction is often criticized for not being realistic. This charge is correct. Abstraction is most definitely not realistic. It would not be abstraction if it was realistic. Abstraction is the process of highlighting only relevant information for analysis.

Three common abstraction methods used in economics are words, graphs, and equations.

Words: One of the earliest methods of abstraction developed by humans is to represent objects and ideas with words. This is a handy way of doing economic abstraction, too. For example, writing the word "frog" on a piece of paper does not mean an actual frog is on the paper. The word only represents the idea of a frog. In the same way, economists use words to represent economic concepts, principles, and relations--such as money or income. The downside to words, however, is that they can have different meanings.

Graphs: Pictures, especially graphical pictures, are often worth thousands of words. Many economic theories are abstractly represented with graphs. While the word "frog" could be misinterpreted as a parched throat, a picture of a frog can be used to represent this amphibious fellow more clearly. Many economic relations lend themselves to graphical pictures, especially lines and curves.

Equations: While pictures might be worth a thousand words, they are flat and two dimensional. As such, economic concepts, principles, and theories are often abstractly represented by equations. Graphs are an excellent way of representing relations between two variables, such as the price of shoes and the quantity of the shoes sold. Economics, however, is often interested in more than two things. This is where mathematical equations are useful. Equations are mathematical relations between variables. In principle, equations can represent relations between any number of variables. The relation between three variables Y, X, and Z can be represented by an equation such as:

Y = 3 + 2X - 4Z.

This equations shows the connection between X and Y, and between Z and Y. More variables can be added easily to this equation to represent more relations.

Соседние файлы в предмете [НЕСОРТИРОВАННОЕ]