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the social science concerned with the efficient use of scarce resources to achieve the maximum satisfaction of economic wants
economics
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a viewpoint that envisions individuals and institutions making rational decisions by comparing the marginal benefits and marginal costs associated with their action
economic perspective
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the comparison of marginal ("extra" or "additional") benefits and marginal costs, usually for decision making
marginal analysis
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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
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the process of deriving and applying economic theories and principles
theoretical economics
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statements about economic behavior or the economy that enables prediction of the probable effects of certain actions
principles
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statement of the nature of the relationship between two or more sets of facts
generalizations
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the assumption that factors other than those being considered are held constant; ceteris paribus
other-things-equal assumption
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the formulation of courses of action to bring about desired economic outcomes or to prevent undesired occurrences
policy economics
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the sacrifice of some or all of one economic goal, good, or service to achieve some other goal, good, or service
tradeoffs
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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
macroeconomics
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a collection of specific economic units treated as if they were one unit
aggregates
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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
microeconomics
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the analysis of facts or data to establish scientific generalizations about economic behavior
positive economics
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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
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the false notion that what is true for the individual (part) in necessarily true for the group (whole)
fallacy of composition
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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
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