24 Jun Read The Excerpt Of Chapter 1 Of The Structure Of Economics And Answer 6 Questions
Question 1: Silberberg mentions that the Ptolemaic explanation for planetary motion was replaced by the Copernican paradigm. According to Silberberg, was the Ptolemaic paradigm replaced because it was less realistic than the Copernican paradigm or was it replaced because the Copernican paradigm was simpler?
-Question 2: Silberberg notes that Economics assumes that tastes are constant. Does Silberberg say that a theory built on this assumption is realistic? Does he say that a theory built on this assumption can be useful?
-Question 3: Which of the enumerated facts on page 6 does Silberberg say that most would agree is irrelevant? What is the point that Silberberg is making by pointing out that most would agree that this fact is irrelevant? -Question 4: According to Silberberg, how can we test the postulate of profitmaximization (on behalf of firms)? (Note that how Silberberg uses ‘behavioral postulate’ is how Friedman uses ‘assumption’)
-Question 5: According to Silberberg, can theories ever be proven?
-Question 6: According to Silberberg, economic theories need to be refutable. But why? To make them more realistic? To make them more useful?
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