Ap Economics: Chapter 1

Front 1

"after this, therefore because of the" fallacy

Back 1

logical fallacy that because event A precedes event B, A is the cause of B

Front 2

aggregate

Back 2

a collection of specific economic units treated as if they were one unit

Front 3

economic perspective

Back 3

economic way of thinking that encompasses scientific method and marginal analysis

Front 4

economics

Back 4

the social science concerned with the efficient use of scarce resources to achieve the maximum satisfaction of economic wants

Front 5

fallacy of composition

Back 5

logical fallacy that what is true for one individual or part of a whole is neccessarily true for a group of individuals or the whole

Front 6

generalization

Back 6

statement of the nature of the relationship between two or more sets of facts

Front 7

macroeconomics

Back 7

examination of either the economy as a whole or its basic subdivisions or aggregates, such as the government, household, and business sectors

Front 8

marginal analysis

Back 8

the comparison of marginal (extra or additional) costs and benefits as a tool for decision making

Front 9

microeconomics

Back 9

examination of specific economic units

Front 10

normative economics

Back 10

the part of economics involving value judgements about what the economy should be like; focused on which economic goals and policies should be implemented; policy economics

Front 11

other-things-equal assumption

Back 11

the assumption that all other variables except those under immediate consideration are held constant for a particular analysis

Front 12

policy economics

Back 12

uses theories and data to formulate policies - courses of action based on economic principles and intended to resolve a specific economic problem or further an economic goal

Front 13

positive economics

Back 13

focuses on facts and cause and effect relationships, includes description, theory development, and theory testing

Front 14

principle

Back 14

statement about economic behavior or the economy that enables prediction of the probable effects of certain actions

Front 15

theoretical economics

Back 15

deriving theories and principles by systematically arranging facts, interpreting them, and generalizing from them