Chapter 1 Flashcards
1
Q
Microeconomics
A
The study of individual households and businesses and how they interact in the marketplace.
2
Q
Macroeconomics
A
The study of the whole economy.
3
Q
Causation
A
One variable that directly affects another, such as average daily temperature vs. ice cream sales.
4
Q
Correlation
A
Two variables that happen to increase or decrease at the same time.
5
Q
Positive statement
A
An objective statement that observes what’s going on. Ex: The wage of burger-flippers causes more people to apply for that position.
6
Q
Normative statement
A
A subjective statement (suggestion). Ex: The government should raise the minimum wage.
7
Q
Fallacy of Composition
A
The fallacy that what benefits the individual person or business will benefit the group.
