CH1 Flashcards
Economics
A social science that examines how people choose among alternatives available to them
Scarcity
The condition of having to choose between alternatives because of limited resources
Scarce Good
A good for which the choice of one alternative requires that another be given up
Free good
A good for which the choice of one use does not require that another be given up
Opportunity cost
The value of the best alternative forgone in making any choice
Margin
The current level of an activity
Choice at the margin
A decision to do a little more or a little less of something
Microeconomics
The branch of economics thag focuses on the choices made by consumers and firms and the impacts those choices have on individual markets
Macroeconomics
The branch of economics that focuses on the impact of choices on the total, or aggregate, level of economic activity
Variable
Something whose value can change
Constant
Something whose variable cannot change
Scientific Method
A systematic set of procedures through which knowledge is created
Hypothesis
An assertion of a relationship between two or more variables that could be proven to be false
Theory
A hypothesis that has not been rejected after widespread testing and that wins general acceptance
Law
A theory that has been subjected to even more testing and that has won virtually universal acceptance
