AQA Economics A Level - Key Term Glossary: Micro

What is behavioural economics?

• A branch of economics that studies the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.

• A field of study that focuses on the mathematical modeling of economic systems.

• An area of economics that deals with the production, distribution, and consumption of goods and services.

• A theory that explains the behavior of markets based on supply and demand.

Ceteris paribus is a Latin phrase that means 'all other things being equal'. It is used in economics to describe a situation where one variable is changed while all other variables are held constant. What does 'ceteris paribus' mean?

• All other things being equal

• Change all variables

• Nothing changes

• All things considered

What are economic assumptions?

• Assumptions about the future economic conditions

• A type of financial statement

• A method of calculating taxes

• A government policy

Define an economic model.

• A representation of economic processes

• A type of financial statement

• A government policy

• A market trend

What is meant by methodology in economics?

• The study of economic systems

• The techniques and principles used in economic analysis

• The history of economic thought

• The application of mathematics in economics

Microeconomics is the study of:

• individual markets and consumer behavior

• the overall economy and large-scale economic factors

• historical economic trends

• government policies and regulations

A moral judgement in economics is:

• an objective analysis of economic policies.

• a subjective evaluation based on personal values.

• a statistical measure of economic performance.

• a legal requirement for economic transactions.

Explain normative statements.

• Normative statements are based on opinions and values.

• Normative statements are factual and can be tested.

• Normative statements are always true.

• Normative statements are irrelevant in economics.

What is a political judgement?

• A decision made based on political beliefs or considerations

• A legal ruling by a court

• An economic forecast

• A scientific hypothesis

Define a positive statement in economics.

• A statement that describes what is, rather than what ought to be.

• A statement that prescribes what should be done.

• A statement that is based on personal opinions.

• A statement that cannot be tested or validated.