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The study of the allocation* of our limited resources to satisfy our unlimited wants
*allocation=distribution |
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| The branch of economics that examines individual decision-making by firms and house holds and the way they interact in specific industries and markets |
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| the branch of economics that examines the workings and problems of the economy as a whole, such as economic growth, inflation, unemployment, and economic fluctuations |
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| the situation in which the quantity of resources is insufficient to meet all wants |
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| people do the best they can, based on their values and information, under current and anticipated future circumstances |
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"all other things being equal" (latin)
the term refers to holding all other varibles constant or keeping all other things the same when one variable is changed |
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the degree to which economic variables are observed to move together
if they move in the same direction, there is a positive correlation
if the move in the opposite direction, there is a negative correlation |
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| a relation of cause-and-effect between variables in which one variable is a determinant of another variable |
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| the incorrect view that what is true for the individual, is always true for the group |
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occurs when one reasons logically that something true of one thing, must also be true of all or some of its parts
Example: 1) A Boeing 747 can fly unaided across the ocean.
2) A Boeing 747 has jet engines.
3) Therefore, one of its jet engines can fly unaided across the ocean. |
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| economic analysis that explains what happens in the economy and why, without making recommendations about economic policy |
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| economic analysis that makes recommendations about economic policy |
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| inputs used to produce goods and services |
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