Economics Flashcards
It is an analysis that generates objective descriptions or predictions about the world that can be verified with data
Positive Economics
It prescribes what an individual or society ought to do
Normative Economics
It is the process of choosing the best option from a set of alternatives, given the available information
Optimization
A special situation where everyone is simultaneously optimizing, so that nobody will benefit personally by changing his or her behavior
Equilibrium
The analysis that is evidenced- based as it uses data to test theories and to determine what is causing things to happen in the world
Empericism
The study of how to allocate scarce resources and how the choices affect society
Economics
It refers to people who don’t contribute but still benefit from others actions
Free Riders
It is the value of all goods and services produced by the country by both domestic and foreign-owned companies
Gross Domestic Products (GDP)
