| Question |
Answer |
| macroeconomics |
the study of the economy as a whole |
| microeconomics |
the study of economics at the level of the individual |
| association as causation |
the mistaken assumption that because two events seem to occur together, one causes the other |
| capital |
products such as machinery and equipment that are used in production |
| dependent variable |
a variable whose value depends on the value of the independent variable |
| direct, or positive, relationship |
the relationship that exists when the values of related variables move in the same direction |
| economic bad |
any item for which we would pay to have less |
| economic good |
any item that is scarce |
| fallacy of composition |
the mistaken assumption that what applies in the case of one applies to the case of many |
| free good |
a good for which there is no scarcity |
| independent variable |
a variable whose value does not depend on the values of other variables |
| inverse, or negative, relationship |
the relationship that exists when the values of related variables move in opposite directions |
| labor |
the physical and intellectual services of people, including the training, education, and abilities of the individuals in a society |
| land |
all natural resources, such as minerals, timber, and water, as well as the land itself |
| normative analysis |
analysis of what ought to be |
| positive analysis |
analysis of what is |
| resources, factors of production, or inputs |
goods used to produce other goods, i.e., land, labor, and capital |
| scarcity |
the shortage that exists when less of something is available than is wanted at a zero price |
| slope |
the steepness of a curve, measured as the ratio of the rise to the run |
MedTemCP5 Word+Pics
