Subject:
Unit 1 Vocabulary Economics ? the social science concerned with the efficient use of scarce resources to achieve the maximum satisfaction of economic wants Economic perspective ? economic way of thinking Marginal analysis ? comparisons of marginal benefits and marginal costs Scientific method ? used to test a hypothesis and evolve it into a theory Theoretical economics ? the role of economic theorizing is to systematically arrange facts, interpret them, and generalize from them Principles ? statements about economic behavior or the economy that enable prediction of the probable effects of certain actions Generalizations ? economic principles are expressed as the tendencies of typical or average consumers, workers, or business firms
