Macroeconomics ECON201
Terms
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- Fallacy of Composition
- The false notion or assumption that what is true for the individual (or part) is necessarily true for the group (whole).
- Eight Economic Goals
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Economic Growth
Full Employment (willing & able)
Economic Efficiency
Price Stability
Economic Freedom
Equal Distribution of Income
Economic Security
Balance of Trade - Generalizations
- Statement of the nature of the relation between two or more sets of facts
- Microeconomics
- Concerned with such individual units as industries, firms & households and with individual markets, specific goods & services, and product and resource prices.
- Macroeconmics
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Concerned w/ economy as a whole - w/ measures of the total economy.
Major aggregates: household, business, govt sectors. - Positive Economics
- The analysis of facts or data to establish scientific generalizations about economic behavior.
- Economics
- The social science dealing w/ the use of scarce resources to obtain the maximum satisfaction of society's virtually unlimited economic wants.
- Economic Perspective
- A viewpoint that envisions individuals and institutions making rational decisions by comparing the marginal benefits marginal costs associated w/ their actions.
- Utility
- The satisfaction or pleasure a consumer obtains from the consumption of a good(s) or service(s).
- Marginal Analysis
- The comparison of marginal ("extra" or "additional") benefits and marginal costs, usually for decision making.
- Scientific Method
- The procedure for the systematic pursuit of knowledge involving the observation of facts and the formulation and testing of hypothesis to obtain theories, principals & laws.
- Principals
- Statements about economic behavior or the economy that enable prediction of the probable effects of certain actions.
- Other-things-equal Assumption
- The assumption that factors other than those being considered are held constant.
- Policy Economics
- The formulation of courses of action to bring about desired economic outcomes or to prevent undesired occurrences.
- Tradeoffs
- The sacrafice of some or all of one economic goal, good, or service to achieve some other goal, good, or service.
- Normative Economics
- The part of economics involving value judgements about what the economy should be like; focused on which economic goals & policies should be implemented; policy economics.
- Theoretical Economics
- The process of deriving & applying economic theories & principals.
- Aggregate
- A collection of specific economics treated as if they were one unit. "Consumers"
- "After this, therefore because of this," fallacy
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Post Hoc Fallacy
Event A precedes event B, A is the cause of B.