Econ Ch. 2 vocab

something that is accepted as true

• assumption

• model

• positive statement

• trade-off

variable change in opposite directions

• direct

• inverse

• positive

• maximize

Economic analysis based on value judgements

• positive

• negative

• normative

• micro

Economic analysis based on facts that can be tested.

• positive

• macro

• normative

• micro

deciding how much more/less to do

• marginal analysis

• marginal benefit

• marginal cost

• net benefit

what is gained from 1 more

• marginal analysis

• marginal benefit

• marginal cost

• net benefit

additional investment needed to do 1 more

• marginal analysis

• marginal benefit

• marginal cost

• net benefit

both factors go up/down

• inverse

• negative

• normative

• direct

A way to simplify a complex system of factors

• economics

• production possibilities curve

• model

• cost benefit analysis

The best option not chosen

• choice

• opportunity cost

• trade-off

• sacrifice