ECN112 Chap 1
Terms
undefined, object
copy deck
- the condition that arises because the available resources are insufficient to satisfy wants
- scarcity
- social science that studies the choices that we make to cope with scarcity
- economics
- study of the choices of individuals and businesses, the interaction of these choices, and the influence the government exerts on these choices
- mircoeconomics
- study of the aggregate(or total) effects on the national or global economy from the choices, individuals, businesses, or governments make
- macroeconomics
- these statements can be right or wrong and can be tested
- what is or positive statements
- statements depend on values and cannot be tested
- what ought to be or normative statements
- a description of some aspect of the economic world, that includes only those features of the world thaty are needed for the purpose at hand
- economic model
- a generalization that summarizes what we understand about the economic choices the people, industries, and nations make based on models that have repeatedly passed the test of corresponding with real-world data
- economic theory
- other things remaining the same
- ceteris paribus
- one factor of interest is different and others are equal/similar
- natural experiments
- look for correlations
- statistical investigations
- tendency for the values of two variables to move in a predictable and related way
- correlation
- The error of reasoning that a first event caused a second, because the first occured before the second
- post Hoc Fallacy
- what you must give up to get something
- cost
- what you gain when you get something, measured by what you are willing to give up
- benefit
- best thing you must give up
- opportunity cost
- previously incurred, irreversible cost
- sunk cost
- choice made by comparing all the relevant alternatives, systematically and incrementally
- margin
- the cost that arises from a one-unit increase in an activity, measured by what you are willing to give up (increases with each unit of activity)
- marginal cost
- benefit that arises from a one-unit increase in an activity, measured by what you are willing to give up (decreases with each unit of activity)
- marginal benefit
- an inducement to take a particular action
- incentive
- a graph of the values of one variable against the value of another
- scatter diagram
- measures time on the x axis and variable(s) on the y axis
- time series graph
- general tendency for the value of a variable to rise or fall
- trend
- (uses bars) shows values of an economic variable for different groups in a population at a point in time
- cross section
- relationship between two variables that move in the same direction
- positive/direct
- relationship between two variables that move in opposite directions
- negative/inverse
- measures the influence of one variable on another
- slope