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| The hypothesis that people are nearly, but not fully, rational, so that they cannot examine every possible choice available the them but instead use simple rules of thumb to sort among the alternatives that happen to occur to them. |
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| An approach to study of consumer behavior that emphasizes psychological limitations and complications that potentially interfere with rational decisions making. |
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| Relying on real-world data in evaluating the usefulness of a model. |
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| Ceteris Paribus Assumption |
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| The assumption that nothing changes except the factor or factors being studied. |
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| Simplified representation of the real-world used as the basis for predictions or explanations. |
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| The assumption that people do not intentionally make decisions that would leave them worst off. |
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| Total amounts or quantities;aggregate demand. |
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| The study of the behavior of the economy as a whole,including such economy wide phenomena as changes in unemployment, general price level, and national income. |
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| The study of decision making undertaken by individuals(or households) and by firms. |
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| What people would buy if their income was unlimited. |
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| Things used to produce goods and services to satisfy people's wants. |
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| The study of how people allocate their limited resources to satisfy their unlimited wants. |
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| Reward for engaging in a particular activity. |
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| Analysis that is strictly limited to making either purely descriptive statements or scientific predictions. |
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| Analysis involving value judgements about economic policies; relates to whether things are good or bad. |
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| A variable whose value changes according to changes in the value of one or more independent variables. |
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| A variable whose value is determined independently of, or outside, the equation under study. |
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| A relationship between two variables that is positive, meaning that an increase in one variable is associated in he other and a decrease in one variable is associated with a decrease in the other. |
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| A relationship between two variables that is negative, meaning that an increase in one variable is associated with a decrease in one variable is associated with an increase. |
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| A line that can be divided into segments of equal lengths, each associated with a number. |
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| The vertical axis in a graph. |
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| The horizontal axis in a graph. |
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| The intersection of the y axis and the x axis in a graph. |
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| The change in the y value divided by the corresponding change in the x value of a curve; "incline" of the curve. |
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