AP Economics Chapter 1 Flashcards

For Ms. Robinson's AP Economics class (MHS)

911554460	Economics	Social science concerned with the efficient use of scarce resources to achieve the maximum satisfaction of economic wants
911554461	Economic Perspective	economic way of thinking
911554462	Utility	pleasure, happiness, or satisfaction
911554463	Marginal Analysis	comparison of marginal benefits and marginal costs
911554464	Scientific Method	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
911554465	Theoretical Economics	process of deriving and applying economic theories and principles
911554466	Principles	statements about economic behavior or the economy that enable prediction of the probable effects of certain actions
911554467	Generalizations	statement of the nature of the relationship between two or more sets of facts
911554468	Other-Things-Equal Assumption	assumption that factors other than those being considered are held constant
911554469	Policy Economics	formulation of courses of action to bring about desired economic outcomes or to prevent undesired ocurrences
911554470	Tradeoffs	sacrifice of some or all of one economic goal, good or service to achieve some other goal, good or service
911554471	Macroeconomics	part of economics concerned with the economy as a whole; with such major aggregates as the household, business, and government sectors; and with measures of the total economy
911554472	Aggregate	collection of specific economic units treated as if they were one unit
911554473	Microeconomics	part of economics concerned with such individual units as industries, firms, and households and with individual markets, specific goods and services, and product and resource prices
911554474	Positive Economics	analysis of factors or data to establish scientific generalizations about economic behavior
911554475	Normative Economics	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
911554476	Fallacy of Composition	false notion that what is true for the individual (or part) is necessarily true for the group (or whole)
911554477	"After this, therefore because of this," Fallcy	believing that because one event (A) preceded another (B), that the second event (B) was caused by the first (A)