Econ Ch. 2 vocab

Front

Accepted as true

Back

assumption

Front

Variable change in opposite directions

Back

Inverse

Front

Economic analysis based on value judgements

Back

normative

Front

Economic analysis based on testable facts.

Back

positive

Front

Deciding how much more/less to do

Back

Marginal analysis

Front

Gained from 1 more:

Back

marginal benefit

Front

Additional investment needed for 1 more unit.

Back

marginal cost

Front

Both factors move together.

Back

Direct

Front

Simplifying a complex system of factors

Back

model

Front

Best option not chosen

Back

opportunity cost