Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/23

Click to flip

23 Cards in this Set

  • Front
  • Back
ceteris paribus
A device used to analyze the relationship between two variables while the values of other variables are held unchanged. (All Else Equal)
descriptive economics
The compilation of data that describe phenomena and facts.
economic growth
An increase in the total output of an economy.
economic theory
A statement or set of related statements about cause and effect, action and reaction.
economics
The study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided.
efficiency
An efficient economy is one that produces what people want at the least possible cost. (Allocative efficiency)
efficient market
A market in which profit opportunities are eliminated almost instantaneously.
empirical economics
Collection and use of data to test economic theories.
equity
Fairness.
fallacy of composition
Erroneous belief that what is true for a part is true for the whole.
macroeconomics
The branch of economics that examines the economic behavior of aggregates - income, employment, output, and so on - on a national scale.
marginalism
The process of analyzing the additional or incremental costs or benefits arising from a coice or decision.
microeconomics
Branch of economics that examines the functioning of individual industries and the behavior of individual decision-making units - that is, business firms and households.
model
Formal statement of theory, usually a mathematical statement of a presumed relationship between two or more variables.
normative economics
An approach to economics that analyzes outcomes of economic behavior, evaluates them as good or bad, and may prescribe courses of action. Also called policy economics.
Ockham's razor
The principle that irrelevant detail should be cut away.
opportunity cost
The best alternative that we forgo, or give up, when we make a choice or a decision.
positive economics
An approach to economics that seeks to understand behavior and the operation of systems without making judgments. It describes what exists and how it works.
post hoc, ergo propter hoc
"After this (in time), therefore because of this" - Common error made in thinking about causation.
scarce
Limited.
stability
Condition
sunk costs
Costs that can not be avoided, regardless of what is done in the future, because they have already been incurred.
variable
A measure that can change from time to time or from observation to observation.