1
Q
Opportunity cost
A
the value of the next best alternative that must be given up because of that decision (for example, working instead of going to school)
2
Q
Abstraction
A
ignoring many details so as to focus on the most important aspects of a problem
3
Q
Theory
A
a deliberate simplification of relationships used to explain how those relationships work
4
Q
Correlation
A
the relationship between two variables that tend to go up or down together; does not imply causation
5
Q
Economic model
A
a simplified, small-scale version of some aspect of the economy.; often expressed in equations, by graphs, or in words
Microeconomics AP
flashcards
Decks in class (15)
# Cards
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Chapter 1 Key Terms5
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Chapter 1 Appendix Key Terms8
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Chapter 2 Key Terms10
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Chapter 3 Key Terms14
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Chapter 4 Key Terms15
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Chapter 5 Key Terms8
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Chapter 5 Appendix Key Terms4
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Chapter 6 Key Terms9
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Chapter 7 Key Terms9
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Chapter 8 Key Terms7
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Chapter 9 Key Terms14
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Chapter 10 Key Terms6
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Chapter 11 Key Terms6
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Chapter 12 Key Terms16
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Chapter 13 Key Terms12
