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Plausible reasoning is defeasible. Plausible reasoning is based on the way things generally go in familiar situations. Plausible reasoning can be used to fill in implicit premises in incomplete arguments. Plausible reasoning is commonly based on appearances from perception. Stability is an important characteristic of plausible reasoning ...
For example, oxygen is necessary for fire. But one cannot assume that everywhere there is oxygen, there is fire. A condition X is sufficient for Y if X, by itself, is enough to bring about Y. For example, riding the bus is a sufficient mode of transportation to get to work.
For example, a tsunami could also explain why the streets are wet but this is usually not the best explanation. As a form of non-deductive reasoning, abduction does not guarantee the truth of the conclusion even if the premises are true. [80] [82] The more plausible the explanation is, the stronger it is supported by the premises.
Most economic models rest on a number of assumptions that are not entirely realistic. For example, agents are often assumed to have perfect information, and markets are often assumed to clear without friction. Or, the model may omit issues that are important to the question being considered, such as externalities. Any analysis of the results of ...
Also called resource cost advantage. The ability of a party (whether an individual, firm, or country) to produce a greater quantity of a good, product, or service than competitors using the same amount of resources. absorption The total demand for all final marketed goods and services by all economic agents resident in an economy, regardless of the origin of the goods and services themselves ...
Overconfidence effect, a tendency to have excessive confidence in one's own answers to questions. For example, for certain types of questions, answers that people rate as "99% certain" turn out to be wrong 40% of the time. [5] [44] [45] [46] Planning fallacy, the tendency for people to underestimate the time it will take them to complete a ...
History suggests it's tough to tame inflation without causing unemployment to spike, but positive recent trends have raised hope that a "soft landing" may be possible. The best-case scenario for ...
In the philosophy of economics, economics is often divided into positive (or descriptive) and normative (or prescriptive) economics.Positive economics focuses on the description, quantification and explanation of economic phenomena, [1] while normative economics discusses prescriptions for what actions individuals or societies should or should not take.