Statements that set forth the limits of the variables in a theory and
identify which of the variables are to be omitted
Real goods, such as machines and factory buildings, which are used in a
production process.
Latin for "other things being equal "; it is an assumption that
states that all other variables are held constant.
The technique of studying variations in equilibrium positions that result
from changes in the underlying variables.
A variable that is a function of one or more other variables.
One where the dependent and the independent variables change in the same
direction.
The description of the process of adjustment between equilibrium
positions.
The assumption that people act to make themselves better off or to pre
vent themselves from becoming worse off.
A state of balance wherein forces for change within a system offset each
other so that there is no net tendency for the system to change.
A type of faulty reasoning that assumes that what is true for one part is
true for the whole.
A statement of how one variable depends on one or more other variables.
Analysis of a state of equilibrium that takes into account all the
effects related to the specific economic disturbance that is
being studied.
A variable upon which one or more other variables depend.
One in which the dependent and independent variables change in opposite
directions.
The creation of goods that are used to produce other goods.
A relationship that has a constant slope.
Extra; additional; incremental.
A type of analysis that predicts or evaluates the outcome by comparing
incremental values.
The additional advantage gained when one more unit of a good is consumed
or produced.
The addition to total cost when one more unit of output is produced.
A formal statement of a theory.
An inverse relationship between variables as shown in a graph.
A relationship be tween variables in which equal changes in the in
dependent variable do not always bring about the same response
in the dependent variable.
An economic approach that concerns itself with what ought to be.
The intersection of the horizontal and vertical axes of a graph.
Analysis of a state of equilibrium that deals with the effects of a
disturbance on one set of economic variables, assuming that all
other variables are unaffected.
Straight lines drawn from values along the horizontal or vertical axes of
a graph.
An economic approach that deals with what is. It tries to be objective
and avoid value judgments.
A direct relationship between variables, as shown in a graph.
The four sections that are formed when a horizontal axis is placed on a
vertical axis.
To mark value-intervals on the axes of a graph.
The change in the variable read on the vertical axis of a graph divided
by the associated change in the variable read on the horizontal
axis of that graph.
An equilibrium that tends to restore itself following disturbances.
The description of an equilibrium state.
A systematically organized body of knowledge that can be applied in a
fairly wide range of circumstances.
The amount of time it takes for an economic variable to have an effect.
The condition of not knowing the probability of the outcome of an event.
An equilibrium that does not tend to restore itself following a
disturbance.
A quantity that can assume any of a se of values.
