Micro Definitions Flashcards
1
Q
Opportunity cost
A
The loss of other alternatives when one alternative is chosen
2
Q
A model
A
A simplified representation of reality used to provide insight into economic decisions and events
3
Q
Ceteris Paribus
A
All other things being equal
4
Q
Positive statement
A
A statement about what is, which is testable or refutable
5
Q
Normative statement
A
A statement that involve a value judgement about what ought to be done
