ECON 101: Chapters 13 Flashcards | Quizlet
ECON 101: Chapters 1-3
27 terms by
A deliberate simplification of relationships
used to explain how those relationships
Two variables are said to be correlated if
they tend to go up or down together.
Correlation need not imply causation.
Ignoring many details so as to focus on the
most important elements of a problem.
A simplified, small-scale version of an
aspect of the economy. Economic models
are often expressed in equations, by
graphs, or in words.
The value of the next best alternative that
must be given up because of that decision
(for example, working instead of going to
Nations can gain from trade by exploiting
Both parties can gain in a
Good decisions typically require this, which
weighs added costs against added benefits.