ECON 1113: EXAM 1

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14 Cards in this Set

Front	Back
Economics	Economics is the social science that analyzes the production, distribution, and consumption of goods and services.
resources	things that have value and are used to produce other goods
Wants	what people would buy if they had unlimited resources
Macroeconomics	Macroeconomics (from Greek prefix "macr(o)-" meaning "large" + "economics") is a branch of economics that deals with the performance, structure, behavior and decision-making of the entire economy, be that a national, regional, or the global economy.
aggregates	An aggregate is a collection of items that are gathered together to form a total quantity.
rationality assumption	We assume that individuals do intentionally make decisions that would leave them worse off
Models	simplified representations of the real world used as the basis for predictions and explanations
Ceteris Paribus	other things held constant, or other things held equal
...	relying on real world data in evaluating the usefulness of a model
...	Assumes people cannot examine or think through every possible choice they confront
...	Value free approach to inquiry, no value judgement are involved If A, then B.
Normative Economics	analysis involving value judgements about economic policies; relates to whether things are good or bad
Scarcity	We do not have enough of everything, including time, to satify our every desire
Production	any activity that results in the conversion of resources into products that can be used in consumption