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14 Cards in this Set
- Front
- Back
Economics
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Economics is a social science. It focuses on people in society and how they interact economics is the study of rationing systems and how scarce resources are allocated to fulfill the infinite wants of consumers
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physiocrats
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group of economic theorists that are concerned with the processes of the physical geography and the economy of 18th century France
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laissez faire
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just let it be, and it will develop in its own way
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positive economics
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based on the analysis of factual information. Also called analytical economics
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normative economics
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based on expression of opinions that reflect values and beliefs. Also known as policy economics
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descriptive statements
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factual observations that can be verified or confirmed
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Conditional statements
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forecasts based on identified behaviour patterns a d assumptions regarding whether these patterns will continue of change. Can be confirmed or refuted by continued observation and analysis.
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endogenous variable
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value determined within a model
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exogenous variable
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value is predetermined
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production possibility curve
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represents all production points resulting from full use of resources
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production possibility point
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represents a combination of goods or services that economy can produce
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market mechanism
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the network of markets and prices found in most western countries
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consumer sovereignty
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consumer decide what to buy and hence what is produced in the economy
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producer sovereignty
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producers decide what to produce and then convince consumers to buy it
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