Similarities to and differences in methodology from natural and other sciences
Economics uses scientific methods like forming hypotheses and testing them with data. But unlike chemistry or physics, economists cannot run controlled lab experiments on the real world.
Real World
Economists tested the hypothesis that a minimum wage rise kills jobs using UK data after the 2016 National Living Wage introduction — employment actually rose, challenging the prediction.
Exam Focus
Always state why ceteris paribus is harder to achieve in economics than in physics — this directly scores AO2 application marks.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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