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15 Cards in this Set

  • Front
  • Back
"after this, therefore because of the" fallacy
logical fallacy that because event A precedes event B, A is the cause of B
a collection of specific economic units treated as if they were one unit
economic perspective
economic way of thinking that encompasses scientific method and marginal analysis
the social science concerned with the efficient use of scarce resources to achieve the maximum satisfaction of economic wants
fallacy of composition
logical fallacy that what is true for one individual or part of a whole is neccessarily true for a group of individuals or the whole
statement of the nature of the relationship between two or more sets of facts
examination of either the economy as a whole or its basic subdivisions or aggregates, such as the government, household, and business sectors
marginal analysis
the comparison of marginal (extra or additional) costs and benefits as a tool for decision making
examination of specific economic units
normative economics
the part of economics involving value judgements about what the economy should be like; focused on which economic goals and policies should be implemented; policy economics
other-things-equal assumption
the assumption that all other variables except those under immediate consideration are held constant for a particular analysis
policy economics
uses theories and data to formulate policies - courses of action based on economic principles and intended to resolve a specific economic problem or further an economic goal
positive economics
focuses on facts and cause and effect relationships, includes description, theory development, and theory testing
statement about economic behavior or the economy that enables prediction of the probable effects of certain actions
theoretical economics
deriving theories and principles by systematically arranging facts, interpreting them, and generalizing from them