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10 Cards in this Set
- Front
- Back
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what is the difference between micro and macro economics? |
micro economics studies specific individuals, households and businesses while macro deals with the economies of whole countries, states etc. small picture & big picture |
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define normative economics |
normative economics studies how the economy should be |
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define positive economics |
positive economics studies facts about the economy- how the economy is |
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define ceteris paribus |
"holding other things constant" |
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when is ceteris paribus relevant? |
when determining the effect of one economic variable on another you want to ignore other variables or "hold them constant" |
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what are the 3 key economic concepts? including how they relate to eachother |
Scarcity(influences ->), choice(influences->), cost |
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define scarcity under economic circumstances |
when there aren't enough resources to fulfil unlimited wants also has alternate functions (one resource used for more than one thing) |
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what 3 choices do we have to make in economics? |
what to produce how to produce it for whom to produce it |
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define cost |
what goes into producing something-not just money-labor, land etc |
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define price |
what something is willing to pay for that good/service ($) |
