Studied by 5 people
Ceteris Paribus
________: in an experiment, everything but the quality being observed must remain constant.
Microeconomics
________: the study of economics at the level of the individual- the small details.
Scarcity
________: you can not get all you want at no cost or zero price.
Macroeconomics
________: the study of the economy as a whole (aggregate)- the big picture.
Free good
________: a good for which there is no scarcity.
Economic good
________: a good which there is scarcity.
Economic bad
________: any item which people would be willing to pay less for.
Normative analysis
________: research which involves opinions, or tells what should be.
Economics
the study of how people make decisions
The basic economic problem
there are limited resources but unlimited wants
Scarcity
you cannot get all you want at no cost or zero price
Economic good
a good which there is scarcity
Free good
a good for which there is no scarcity
Economic bad
any item which people would be willing to pay less for
4 economic resources
labor (paid in wages), capital (paid in interest), land (paid in rent), and entrepreneurship (paid in profit)
Rational self-interest
people will choose what is in their best interest, or choose whatever brings them the most benefit
Positive analysis
research or analysis based on concrete fact
Normative analysis
research which involves opinions, or tells what should be
Fallacy of composition
"something that is good for one is good for all"
Association as causation
"one event causes the other if they are related"
Ceteris Paribus
in an experiment, everything but the quality being observed must remain constant
Note 
Flashcard (32)