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20 Cards in this Set
- Front
- Back
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Science of Satisfying unlimited wants with limited resources
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Economics
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The condition of being available in some finite quanity, a limited amount
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Scarcity
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- What is What will be
- Based on obsrevation - can be tested, supported or refuted |
Positive Economics
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- What ought to be ; What should be
- Subjective, based on values - Cannot be tested |
Normative Economics
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Study of economic behavior and activities at the level of nations & regions
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Macroeconomics
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Study of economic behavior and activities at the level of individual consumers, firms, markets, and industries
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Microeconomics
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Set of economic definitions, concepts, and principles put together to make the cause & effect relationship between economic data
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Economic theory
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Mistaken notion that what is true for the part is true for the whole
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Fllacy of Composition
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Mistaken notion that an event that happened before another event was the cause of the event
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Post Hoc Fallacy
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Allowing personal bias to affect one's analysis
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Subjectivity
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Wrong understanding of the context of a term
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Incorrect Definition
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Failure to hold other things constant
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Ceteris Paribus
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The single highest valued alternative forgone as a result of making a selection
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Opportunity Cost
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Relates to consumers behavior& interest
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Demand
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The amount of a good that people are willing and able to purchase
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Quantity Demanded
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Ceteris Paribus Other things equal, As the price of agood or service increases the quantity demanded decreases (Price upo quantity demanded down)
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Law of Demand
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A rightward or outwad shift in the denmand curve
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Increase in Demand
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A leftward or inward shift in the demand curve
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Decrease in Demand
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A good or service for which demand increased when income increases
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Normal good
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A good or service for which demand decreases when income increases
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Inferior Good
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