Econ 100 A

Front 1

Economics

Back 1

Economics is the study of the allocation of our limited resources to satisfy our unlimited wants.

Front 2

Resources

Back 2

are inputs that are used to produce goods and services.

Front 3

Scarcity

Back 3

forces us to make choices on how to best use our limited resources.

Front 4

The economic problem

Back 4

Scarcity forces us to choose, and choices are costly because we must give up other opportunities that we value.

Front 5

Macroeconomics

Back 5

deals with the aggregate, or total economy.
It looks at economic problems as they influence the whole of society, including the topics of inflation, unemployment, business cycles, and economic growth.

Front 6

Microeconomics

Back 6

deals with the smaller units within the economy.
It attempts to understand the decision making behavior of firms and households and their interaction in markets for particular goods or services.

Front 7

Economic Behavior

Back 7

Believe people are motivated by self interest

To worker - gaining a higer pay and or workin conditions

To Consumer - gaining a higher level of satisfaction from limited resources or time

Front 8

Economist assume about people

Back 8

they act in rational behavior - people do the best they can, based on their values and information, under the current set of circumstances.

Front 9

Hypothesis - econ

Back 9

testable prediction about how people will behave or react to a change in economic circumstances.

Front 10

Emprical Data

Back 10

the use of data to test a hypothesis

Front 11

Ceterous Paribus

Back 11

theorys are formed using ceterous paribus holding everything else constant

Front 12

Correlations

Back 12

Fact that two events occur simultaniously

Front 13

Causation

Back 13

One event is caused by the other

Correlation does not necessarily mean causation

Front 14

Fallacy of Composition

Back 14

The incorrect view that what is true for an individual is true for a group

Front 15

Positive Analysis

Back 15

an objectable testable statement that describes what happens and why it happens

Front 16

Normative Analysis

Back 16

a subjective non testable item about what should or should not occur. Attempts to proscribe what should be done

Front 17

Economists disagree on:

Back 17

many normative issues

disagreements in Positive analysis can be due to mixed empirical data or insufficient information

Front 18

economists agree on

Back 18

effects of rent control, import tariffs, export restrictions, the use of wage and price controls to curb inflation, and the minimum wage.