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24 Cards in this Set
- Front
- Back
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Economics |
The study of how people, individually and collectively, manage resources |
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Microeconomics |
The study of how individuals and firms manage resources |
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Macroeconomics |
The study of the economy on a regional, national, and international scale |
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Rational behavior |
Making choices to achieve goals in the most effective way possible |
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Scarcity |
The condition of wanting more than we can get with available resources |
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Opportunity cost |
The value of what you have to give up in order to get something; the value of your next-bat alternative |
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Marginal decision making |
Comparison of additional benefits of a choice against the additional costs it would bring, without considering related benefits and costs of past choices |
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Sunk cost |
A cost that has already been incurred and cannot be recovered or refunded |
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Sunk cost |
A cost that has already been incurred and cannot be recovered or refunded |
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Incentive |
Something that causes people to behave in a certain way by changing the trade-offs they face |
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Efficiency |
Use of resources in the most productive way possible to produce the goods and services that have the greatest total economic value to society |
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Efficiency |
Use of resources in the most productive way possible to produce the goods and services that have the greatest total economic value to society |
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Correlation |
A consistently observed relationship between two events or variables |
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Efficiency |
Use of resources in the most productive way possible to produce the goods and services that have the greatest total economic value to society |
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Correlation |
A consistently observed relationship between two events or variables |
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Causation |
A relationship between two events in which one brings about the other |
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Efficiency |
Use of resources in the most productive way possible to produce the goods and services that have the greatest total economic value to society |
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Correlation |
A consistently observed relationship between two events or variables |
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Causation |
A relationship between two events in which one brings about the other |
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Model |
A simplified representation of the important parts of a complicated situation |
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Circular flow model |
A simplified representation of how the economy's transactions work together |
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Circular flow model |
A simplified representation of how the economy's transactions work together |
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Positive statement |
A factual claim about how the world actually works |
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Normative statement |
A claim about how the world should be |
