CH1 Terms - Terms Abstraction- elimination of irrelevant...

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Terms Abstraction - elimination of irrelevant and noneconomic facts to obtain an economic principle. Aggregation - the combing of individual untis or data into one unit or number. For example, all prices of individual goods and services are combined into price level or all units of output are aggregated into gross domestic product. economic perspective - A viewpoint that envisions individuals and institutions making rational decisions by comparing the marginal benefits and marginal costs associated with their actions. Economics - The social science dealing with the use of scarce resources to obtain the maximum satisfaction of society’s virtually unlimited economic wants. fallacy of composition- The false notion that what is true for the individual (or part) is necessarily true for the group (or whole). Generalization - Statement of the nature of the relationship between two or more sets of facts. Macroeconomics
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This note was uploaded on 01/30/2011 for the course ECO 218 taught by Professor Dr.rhibidaoud during the Spring '10 term at Sinclair CC.

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CH1 Terms - Terms Abstraction- elimination of irrelevant...

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