quiz 1 Flashcards
1
Q
What is economics?
A
The study of the allocation of our scarce resources to satisfy our unlimited wants.
2
Q
economic theories
A
statements or propositions about patterns of human (economic) behavior that are expected to take place under certain circumstances
3
Q
Why do we abstract?
A
to focus on the most important part of the problem
4
Q
Emperial analysis
A
examines date to see if the hypothesis fits well with facts
5
Q
Ceteris paribus assumption
A
Isolating a variable to accurately asses its effect
6
Q
correlation
A
icy roads, reduced speeds, more accidents
7
Q
causation
A
reduced speed doesn’t cause more accidents, icy roads do
8
Q
positive analysis
A
objective
9
Q
normative analysis
A
subjective
