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