Economics 1020 Final Exam Review Flashcards

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Economics is considered an art and a science. That’s because it combines the use of fact with value judgments. But there are streams of economics that separate what is happening now from what should be in the future.

Economists see the world through a different lens than anthropologists, biologists, classicists, or practitioners of any other discipline. They analyze issues and problems with economic theories that are based on particular assumptions about human behavior, that are different than the assumptions an anthropologist or psychologist might use. A theory is a simplified representation of how two or more variables interact with each other. The purpose of a theory is to take a complex, real-world issue and simplify it down to its essentials.

Quantitative results in science, economics included, are expressed using algebraic equations. As a social science, economics analyzes the production, distribution, and consumption of goods and services. mollusks like clams and snails have a simple heart that pumps _____ through open-ended vessels. The study of economics requires the use of mathematics in order to analyze and synthesize complex information. Is there a relationship between inflation and the level of UNEMPLOYMENT?

Recovery from civil conflict is very uncertain. Countries that maintain stability can experience a “peace dividend,” through the rapid re-accumulation of physical capital . However, successful recovery depends on the quality of legal system and the protection of private property.

… Businesses try to predict what the business environment will be like and how it will affect their ability to generate profits. Economists also make economic assumptions when they build economic models. Economists conduct research, collect and analyze data, monitor economic trends, and develop forecasts.

Draw an arrow in the reverse direction to represent payments for imports. Economics, as a science, follows the scientific method in order to study data, observe patterns, and predict results of stimuli. Concepts in algebra that are used in economics include variables and algebraic expressions. Variables are letters that represent general, non-specified numbers.

We just look at it from the outside. So how it really is is difficult to see. But when we look inside, you can see that there is a big difference between the way our world works and what we see. If we were to create a new world that is based in that new world, then we would have to figure out how we could make it work.

By using algebra, economists are able to develop theories and structures that can be used with different scenarios regardless of specific quantities. Traditionally, economic theory says that a country’s total investment must equal its total SAVINGS. During the second half of the 20th century rich countries gave over $1 trillion in aid to poor ones.

It focuses on what the outcome of the economy or goals of public policy should be. Many normative judgments are conditional. They are given up if facts or knowledge of facts change. In this instance, a change in values is seen as being purely scientific. Welfare economist Amartya Sen explained that basic judgments rely on knowledge of facts. Although, simplifying assumptions help economists study complex scenarios and events, there are criticisms to using them.