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12 Cards in this Set

  • Front
  • Back
What's the definition of Economics?
The social science concerned with the efficient use of scarcity to achieve the maximum satisfaction of economic wants.
What are the 3 rules of Scarcity?
1. What to produce
2. How to produce
3. For Whom to produce
What are Positive Economics?
Focuses on facts and cause and effect relationships.
(What it is)
What are normative Econmics?
Focuses on policy econmics.
(what it should be)
Opportunity Costs
getting more of one thing while forgoing the oppurtunity to get something else
Rational Self-Interest
Theoretical Economics
process of deriving theories or principles
Economic Principles
statements about economic behavior or the economy that enable prediction of the probably effects of certain actions
Other-things-equal assumption
assuming that all other variables except those under imediate consideration are held constant during analysis
to achieve on econmic goal while sacrificing another
the way people approach the world
Fallacy of Composition
the assumption that what is true for one individual is necesarilly true for the whole