CHAPTER 1

Economics

Examines how individuals, instutions, and society make choices under conditions of scarcity.
Economics Perspective

Or Economic way of thinking, has several critical and closely interrelated features.
Opportunity Costs

To obtain more of one thing, society forgoes the opportunity of getting the next best thing.
Marginal Analysis

Comparisons of marginal benefits and marginal costs, usually for decision making.
Microeconomics & Macroeconomics

Microeconomics - focuses on specific decision-making units of the economy.

Macroeconomics - examines the economy as a whole
Positive & Normative Economics
- Positive Economics- deals with factual statements. focus on facts and cause and effect relationship (what is)
- Normative Economics- involves value judgement. what the economy should be like(what ought to be)

Author

dorcely28

192139

Card Set

CHAPTER 1

Description

VOCAB

Updated

2013-01-13T02:00:53Z

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