Chapter 1 Key Terms Flashcards
1
Q
Opportunity cost
A
the value of the next best alternative that must be given up because of that decision (for example, working instead of going to school)
2
Q
Abstraction
A
ignoring many details so as to focus on the most important aspects of a problem
3
Q
Theory
A
a deliberate simplification of relationships used to explain how those relationships work
4
Q
Correlation
A
the relationship between two variables that tend to go up or down together; does not imply causation
5
Q
Economic model
A
a simplified, small-scale version of some aspect of the economy.; often expressed in equations, by graphs, or in words
