Are most of the economic theories assumptions based?

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Are most of the economic theories assumptions based?

2006-06-07 21:22:00 · 3 answers · asked by Anonymous in Social Science ➔ Economics

3 answers

In general a theory is based on assumptions in any field.

Economics just tends to start out with more because EVERYTHING in economics operates in a system, and in a dynamic system at that, so we have the central assumption

Ceteris Paribus - all other things being equal

Accountants do the same - they assume when looking at a financial statement that GAAP is followed, that there are no cash plugs, that purchase price is used as a basis for inventory valuation, etc.

2006-06-09 03:47:27 · answer #1 · answered by Veritatum17 6 · 0⤊ 0⤋

ya most of them are assumption based!

2006-06-09 05:58:50 · answer #2 · answered by Vashini 2 · 0⤊ 0⤋

Could you rephrase the question?

2006-06-08 05:47:23 · answer #3 · answered by lyghtningrod 3 · 0⤊ 0⤋