AP MacroEcon Ch. 1

197958469	economics	the social science dealing with the use of scarce resources to obtain the maximum satisfaction of society's virtually unlimited economic wants.
197958470	economic perspective	a viewpoint that envisions individuals and institutions making rational decisions by comparing the marginal benefits and marginal costs associated with their actions
197958471	utility	the want-satisfying power of a good or service; the satisfaction or pleasure a consumer obtains from the consumption of a good or service (or from the consumption of a collection of goods and services).
197958472	marginal analysis	the comparison of marginal ("extra" or "additional") benefits and marginal costs, usually for decision making.
197958473	scientific method	the procedure for the systematic pursuit of knowledge involving the observation of facts and the formulation and testing of hypotheses to obtain theories, principles, and laws.
197958474	theoretical economics	the process of deriving and applying economic theories and principles.
197958475	principles	a fundamental, primary, or general law or truth from which others are derived.
197958476	generalizations	statement of the nature of the relationship between two or more sets of facts.
197958477	other-things-equal assumption	the assumption that factors other than those being considered are held constant.
197958478	policy economics	the formulation of courses of action to bring about desired economic outcomes or to prevent undesired occurrences.
197958479	tradeoffs	the sacrifice of some or all of one economic goal, good, or service to achieve some other goal, good, or service.
197958480	macroeconomics	the part of economics concerned with the economy as a whole; with such major aggregates as the house-hold, business, and government sectors; and with measures of the total economy.
197958481	aggregate	the combining of individual units or data into one unit or number.
197958482	microeconomics	the part of economics concerned with such individual units as industries, firm, and households and with individual markets, specific goods and services, and product and resource prices.
197958483	positive economics	the formulation of courses of action to bring about desired economic outcomes or to prevent undesired occurrences.
197958484	normative economics	the part of economics involving value judgments about what the economy should be like; focused on which economic goals and policies should be implemented; policy economics.
197958485	fallacy of composition	the false notion that what is true for the individual (or part) is necessarily true for the group (or whole).
197958486	"after this, therefore because of this," fallacy	the false belief that when one event precedes another, the first event must have caused the second event.