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18 Cards in this Set

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economics
- The social science concerned with the efficient use of limited or scarce resources to achieve maximum satisfaction of human material wants.
economic perspective
- A viewpoint that envisions individuals and institutions making rational decisions by comparing the marginal benefits and marginal costs associated with their actions.
utility
- The want-satisfying power of a good or service; the satisfaction or pleasure a consumer obtains from the consumption of a good or service (or from the consumption of a collection of goods and services).
marginal analysis
- The comparison of marginal (“extra” or “additional”) benefits and marginal costs, usually for decision making.
scientific method
- The procedure for the systematic pursuit of knowledge involving the observation of facts and the formulation and testing to hypotheses to obtain theories, principles, and laws.
theoretical economics
- The process of deriving and applying economic theories and principles.
principles
- The statements about economic behavior or the economy that enable prediction of the probable effects of certain actions.
generalizations
- Statement of the nature of the relationship between two or more sets of facts.
other-things-equal assumption
- The assumption that factors other than those being considered are held constant.
policy economics
- The analysis of facts or data to establish scientific generalizations about economic behavior.
tradeoffs
- The sacrifice of some or all of one economic goal, good, or service to achieve some other goal, good, or service.
macroeconomics
- The part of economics concerned with the economy as a whole, with such major aggregates as the household, business, and government sectors; and with measures of the total economy.
aggregate
- A collection of specific economic units treated as if they were one unit.
microeconomics
- The part of economics concerned with such individual units as industries, firms, and households and with individual markets, specific goods and services, and product and resource prices.
positive economics
- The analysis of facts or data to establish scientific generalizations about economic behavior.
normative economics
- The part of economics involving value judgments about what the economy should be like; focused on which economic goals and policies should be implemented; policy economics
fallacy of composition
- The false notion that what is true for the individual (or part) is necessarily true for the group (or whole).
“after this, therefore because of this,” fallacy
- The fact that just because event A precedes event B, it is not certain that A is the cause of B.