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13 Cards in this Set
- Front
- Back
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Scientific Method |
The dispassionate and testing of theories and how the world works |
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Circular Flow Diagram |
A visual model of the economy that shows how dollars flow through markets among households and firms |
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Production Possibilities Frontier |
A graph that shows the output that the economy can possibly produce given the available resources and the available production technology |
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Micro-Economics |
The study of economics and its effect on individuals |
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Macro-Economics |
The study of economics and how it effects governments |
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Positive Statements |
Factual and based on information |
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Normative Statements |
Cannot be proved or disproved; typically based on opinion |
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Negatively Related |
When both variables move in opposite directions Ex: When quantity of novels demanded and the price move in opposite directions |
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Positively Related |
When both variables move in the same direction; the curve is upwardly sloped Ex: If novels demanded and price move in the same direction |
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Movement |
Caused by a change in the quantity demanded/supplied or its price |
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Shift |
An outside force changing; a change in consumers wants/needs, technological changes, & economical changes
(If the changing variable isn't on either axis, the graph will shift) |
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Omitted Variable |
A third variable effecting the graph that is not listed on either axis |
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Reverse Causality |
Ex: We thought A caused B, but B actually causes A |
