Economics Today (the Macro View): Chapter 1
Terms in this set (17)
Rewards or penalties for engaging in a particular activity
The study of how people allocate their limited resources to satisfy their unlimited wants
Things used to produce goods and services to satisfy people's wants. Things that have value.
What people would buy if their incomes were unlimited
The study of decision making undertaken by individuals (or households) and by firms
The study of the behavior of the economy as a whole, including such economywide phenomena as change in unemployment, the general price level, and national income
Total amounts or quantities. Aggregate demand, for example, is total planned expenditures throughout a nation
A society's institutional mechanism for determining the way in which scarce resources are used to satisfy human desires
The assumption that people do not intentionally make decisions that would leave them worse off
Models, or theories
Simplified representations of the real world used as the basis for predictions or explanations
Ceteris paribus assumption
The assumption that nothing changes except the factor or factors being studied
Relying on real-world data in evaluating the usefulness of a model
An approach to the study of consumer behavior that emphasizes psychological limitations and complications that potentially interfere with rational decision making
The hypothesis that people are nearly, but not fully, rational, so that they cannot examine every possible choice available to them but instead use simple rules of thumb to sort among the alternatives that happen to occur to them
Analysis that is strictly limited to making either purely descriptive statements or scientific predictions; for example, "If A, then B." A statement of what is.
Analysis involving value judgements about economics policies; relates to whether outcomes are good or bad. A statement of what ought to be.
Price System (Market System)
term describing an economic system that answers the 3 basic economic questions via decentralized decision making.
YOU MIGHT ALSO LIKE...
MCAT Behavioral Sciences | Kaplan Guide
1. Nature of Economics
The Micro View - 1
Microeconomics Chapter 1
OTHER SETS BY THIS CREATOR
CSE 2315 1-1 thru 1-3
Economics Today (the Macro View): Chapter 33: Exchange Rates and the Balance of Payments
Economics Today (the Macro View): Chapter 32: Comparative Advantage and the Open Economy
Economics Today (the Macro View): Chapter 17: Stabilization
THIS SET IS OFTEN IN FOLDERS WITH...
Economics Today (the Macro View): Chapter 2
Economics Today (the Macro View): Chapter 3
Economics Today (the Macro View): Chapter 4
Economics Today (the Macro View): Chapter 6: Funding Public Sector