Campbell R. McConnell,
University of Nebraska, Lincoln
Stanley L. Brue,
Pacific Lutheran University
Thomas P. Barbiero,
Ryerson University
| Aggregate | A collection of specific economic units treated as if they were one unit.
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| Economic perspective | A viewpoint that envisions individuals and institutions making rational decisions by comparing the marginal benefits and marginal costs associated with their actions.
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| Economics | The social science dealing with the use of scarce resources to obtain the maximum satisfaction of society's virtually unlimited economic wants.
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| Fallacy of composition | Incorrectly reasoning that what is true for the individual (or part) is necessarily true for the group (or whole).
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| Generalization | Statement of the nature of the relation between two or more sets of facts.
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| Macroeconomics | The part of economics concerned with the economy as a whole; with such major aggregates as the household, business, and governmental sectors; and with measures of the total economy.
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| Marginal analysis | The comparison or marginal ("extra" or "additional") benefits and marginal costs, usually for decision making.
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| Microeconomics | The part of economics concerned with such individual units as industries, firms, and households; and with individual markets, particular prices, and specific goods and services.
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| Normative economics | The part of economics involving value judgments about what the economy should be like; concerned with which economic goals and policies should be implemented.
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| Other things equal assumption | The assumption that factors other than those being considered are held constant.
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| Policy economics | The formulation of courses of action to bring about desired economic outcomes or to prevent undesired occurrences.
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| Positive economics | The analysis of facts or data to establish scientific generalizations about economic behaviour.
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| Post hoc, ergo propter hoc fallacy | Incorrectly reasoning that when one event precedes another the first event must have caused the second event.
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| Principles | Statements about economic behaviour that enable prediction of the probable effects of certain actions.
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| Scientific method | The procedure for the systematic pursuit of knowledge involving the observation of facts and the formulation and testing of hypotheses to obtain theories, principles, and laws.
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| Theoretical economics | The process of deriving and applying economic theories and principles.
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| Tradeoffs | The sacrifice of some or all of one economic goal, good, or service to achieve some other goal, good, or service.
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2002 McGraw-Hill Higher Education