Economics Chapter 1

  1. the social science concerned with the efficient use of scarce resources to achieve the maximum satisfaction of economic wants
  2. a viewpoint that envisions individuals and institutions making rational decisions by comparing the marginal benefits and marginal costs associated with their action
    economic perspective
  3. the comparison of marginal ("extra" or "additional") benefits and marginal costs, usually for decision making
    marginal analysis
  4. the procedure for the systematic pursuit of knowledge involving the observation of facts and the formulation and testing of hypothesis to obtain theories, principles, and laws
    scientific method
  5. the process of deriving and applying economic theories and principles
    theoretical economics
  6. statements about economic behavior or the economy that enables prediction of the probable effects of certain actions
  7. statement of the nature of the relationship between two or more sets of facts
  8. the assumption that factors other than those being considered are held constant; ceteris paribus
    other-things-equal assumption
  9. the formulation of courses of action to bring about desired economic outcomes or to prevent undesired occurrences
    policy economics
  10. the sacrifice of some or all of one economic goal, good, or service to achieve some other goal, good, or service
  11. the part of economics concerned with the economy as a whole; with such major aggregates as the households, business, and government sectors; and with measures of the total economy
  12. a collection of specific economic units treated as if they were one unit
  13. the part of economics concerned with such individual units as industries, firms, and households, and with individual markets, specific goods and services, and product and resource prices
  14. the analysis of facts or data to establish scientific generalizations about economic behavior
    positive economics
  15. the part of economics involving value judgement about what the economy should be like; focused on which economic goals and policies should be implemented; policy economics
    normative economics
  16. the false notion that what is true for the individual (part) in necessarily true for the group (whole)
    fallacy of composition
  17. post hoc, ergo propter hoc fallacy, concluding that because event A precedes event B, A is the cause of B
    "after this, therefore because of this" fallacy
Card Set
Economics Chapter 1