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ECON 2302 _ Unit 1- All key terms _ (PORTFOLIO DETAILED ANSWERS) 2024 - DISTINCTION
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ECON 2302 _ Unit 1- All key terms _ (PORTFOLIO DETAILED ANSWERS) 2024 - DISTINCTION
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8/4/24, 7:02 AMECON 2302 | Unit 1- All key terms
Jeremiah
Terms in this set (51)
Economics is the study of the choices, methods or systems used by societies to
economics
allocate scarce resources.
The fallacy of composition exists when we conclude that something that is appropriate
fallacy of composition for an individual must be also appropriate for society. Example: If it is good for the
individual to save more it must be good for the overall economy.
Macroeconomics is a study of the allocation of resources relative to the overall national
macroeconomics
economy or large sectors within it.
Comparing the marginal (extra) costs to the marginal (extra) benefits as an aid to
marginal analysis decision making. Example: Is the extra (marginal) benefit of a college degree greater
than the marginal cost?
Microeconomics is a study of the allocation of resources in smaller units, specifically
microeconomics
the individual consumer and the individual business unit or firm.
The description of the economy where opinion is utilized and value judgments are
made.
normative economics
Example: because of government's effective use of fiscal policy, unemployment has
fallen to only 5.5%.
Anytime we receive a benefit from use of a resource, it comes at a cost because we
could have used that resource for a different opportunity. All of our decisions come at a
opportunity cost analysis
cost and this cost is compared to the benefit we receive in deciding if we should
undertake the action.
Policy Economics is the application of the principles of economics to government
policy economics policy actions. Government seeks to understand economic activities in order to
influence economic activity.
The description of an economy by stating facts or using specific data. No opinion is
positive economics involved.
Example: the unemployment rate is 5.5%
The study of Economics involves the use of a logical pattern of thinking as well as
rational analysis
analytical tools of analysis.
ECON 2302 | Unit 1- All key terms
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