stats Flashcards
(22 cards)
the application of economic theory and economics in real world situation
APPLIED ECONOMICD
SUSTAINED ELEVATION OF AN ENITRE SOCIETY AND Social system towards and better and more human life
ECONOMIC DEVELOPMENT
ENSURING THAT SOCIETY IS ABLE TO PROVIDEBASIC NEEDS LIKE FOOD, Shelter, health, and protection
Sustenance
self respect, reputation, pride, and acknowledgement
SELF ESTEEM
providing for a wide variety of choices for societies as well as minimizing external limitations
FREEDOM
A principle in economic analysis which describes what exists and how things work.
Positive economics
Focuses on the outcome of economic behavior, evaluates and makes judgements, and proposes courses of action.
Normative Economics
Is a proposition about certain related variables that explains a certain phenomenon.
Theory
A framework or representation of significant principles and describes how variables are related.
Model
Based on his observations of statistical data on population growth and food supply, Malthus proposed a principle that population growth proceeds at an exponential or geometric rate while food production increases at an arithmetical rate.
POPULATION THEORY
Proposed by Thomas Malthus (1729)
Economists assume that individuals act in a logical and predictable manner and pursue goals which will benefit them.
Rationality
In analyzing the behavior of individuals and firms in markets, it is assumed that participants expect to gain something from their transactions.
Profit Maximization
In most markets, it is assumed that consumers and producers have complete and accurate information about products, services, prices, utility, quality, and production methods.
Perfect Information
This Latin phrase, which means “all things being equal,” refers to the assumption which controls the effects of other variables apart from those that are being analyzed in the study.
Ceteris Paribus
Refers to errors in judgment or conclusions due to faulty reasoning.
Fallacy
An error in analysis committed when an individual considers other extraneous variables in studying an economic phenomenon.
Failure to hold things constant under ceteris paribus
This fallacy relates to the Latin phrase “post hoc ergo propter hoc” which describes how people make the mistaken notion that since a change happened after an event, then such change was caused by the event that came before it.
Post hoc fallacy
This fallacy occurs when one considers a trait of one part or aspect of something as true or applicable for the whole. = - - This also occurs when a person thinks that a phenomenon, as experienced by an individual or a certain group, can be applied to a larger group or the general population.
Fallacy of composition
This fallacy refers to a statement that oversimplifies a specific scenario presenting it as a general rule.
Sweeping generalization
Is a graph that shows the greatest sum of outputs given accessible inputs or resources in an economy.
Production Possibilities Frontier
Considers that is most advantages of economics to specialize to industries where they enjoy an advantage in resources and production processes
Comparative Advantage
Is another significant aspect of economics development that has to be considered in an interconnected global community.
International Trade
