And, finally, they borrow from statistics in order to make inferences from real-world data about hypothesis suggested by economic theory. Economists are interested in understanding human behavior not only for its own sake, but also because of the policy implications of this knowledge. As in other scientific disciplines, theory in economics is an abstraction, or simplification, of innumerable complex relationships in the real world. When thinking about some aspects of behavior, economists will build a model that attempts to explain the behavior under examination. The elements of the model are derived from economic theory.
Economists study the model to see what hypotheses, or predictions, are suggested by the model.
These can then be checked against real-world data. Economists clearly believe that they can make a significant contribution to the discussion and resolution of many important social issues. It is hoped that by the time you finish this course you will agree with this belief. Used copies are available. The same text and edition will be used in Economics 224 during the summer session and during the fall semester.