Microecon Week 1 Flashcards
‘A ‘map’ from one or more variables x to an outcome y=f(x)’ describes…?
A univariate function
A function of the form ‘y=a+bX;
e. g., y=f(x)=−10+3x’
describes. ..?
A linear function
‘The slope of the line tangent to the curve at a single point’ describes?
Instantaneous rate of change
If f(x) is a function, what is f′(x)?
A derivative of a function
If the second order derivative (f′′(x)) is greater than 0, the slope is always __?
Increasing
If the second order derivative (f′′(x)) is less than 0, the slope is always __?
Decreasing
What is the type of research that uses evidence from the real world?
Empirical research
The ‘science’ of using data to answer economic questions, that uses statistical tools and economic theory, is called?
Econometrics
Data where the unit of observation is an individual, household, firm etc, is referred to as?
Micro-data
What is the term for ‘holding all other things constant?’
Ceteris Paribus
What is the term that implies that choices that can be expressed by individuals maximising utility functions subject to their budget constraints?
Standard axioms