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17 Cards in this Set
- Front
- Back
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Positive Statement |
can be tested and validated; it describes "what is." |
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Normative Statement |
an opinion that cannot be tested of validated; it describes "what ought to be." |
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Ceteris Paribus |
the concept under which economists examine a change in one variable while holding everything else constant |
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Endogenous Factors |
the variables that can be controlled for in a model |
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Exogenous Factors |
the variable that cannot be controlled in a model |
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Production Possibilities Frontier (PPF) |
model that illustrates the combinations of outputs that a society can produce if all of its resources are being used efficiently |
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Law of Increasing Relative Cost |
opportunity cost of producing a good rises as society produces more of it |
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Absolute Advantage |
refers to the ability of one producer to make more than another producer with the same quantity of resources |
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Consumer Goods |
produces for present consumption |
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Capital Goods |
help produce other valuable goods and services in the future |
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Investment |
the process of using resources to create or buy new capital |
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Variable |
quantity that can take on more than one value |
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Scatterplot |
graph that shows individual (X,Y) points |
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Positive Correlation |
occurs when two variables move in the same direction |
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Negative Correlation |
occurs when two variable move in the opposite direction |
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Slope |
the change in the rise along the y-axis (vertical) divided by the change in the run along the x-axis (horizontal) |
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Reverse Causation |
occurs when causation is incorrectly assigned among associated events |
