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economics
the social science study concerned with the efficient use of the scare resources to maximize the satisfactions of people's wants.
what are the three decision makers in economics
households, businesses, and governments
what are the two efficiencie of economics
least cost and most wanted
what is another word for least cost efficiencies
productive efficiency
what is another term for most wanted efficiencies
allocate efficiency
what are the four resource categories
land, labor, capital, entrepreneurship
what are federal policies used for
to eliminate major macroeconomic problems such as unemployment and inflation
what are the two main federal policies
fiscal and monetary
what is fiscal policy
taxation, and government spending that is congress controlled
what is monetary policy
interest rate that is U.S. central bank control
theoretical economics
The process of finding the explanations to the problems (based on facts; "what is")
policy economics
the process of finding the explanations to create the solutions to the problem (based on what is ought to be)
ex. policy or theoretical
" the minimum wage should be increased so low-income workers can earn a living wage
policy
ex. policy or theoretical
the rate of inflation was about 2 percent last year, an all time low for the past decade
theoretical
fallacy of compositions
the error of assuming that what is true of a member of a group is true for the group as a whole
post HOC fallacy
the assumption that because one event preceded another event, they must be casually related. in other words, the first event must have caused the second. However, the chronological order of the two events DOES NOT prove a cause and effect relationship.
what is the difference between macro and micro economics
macroeconomics is the study of the aggregate, national level, decisions while micro is a study of a specific place such as a household or firm.
is Y-axis dependent or independent
dependent
is X-axis dependent or independent
independent
Ceteris paribus
to hold all other factors constant
opportunity cost
the lost of the best alternative
