Summary
Summary Econ112 textbook summaries
- Course
- ECON112
- Institution
- North-West University (NWU)
Summary of Chapter 1&2 for ECON112 Economics
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ECON 112, CHAPTER 1: DEFINITIONS
Study of human behaviour as a relationship between ends
Economics: and scarcity means which have alternative uses. Derived
from the Greek word oikos (house) and némein (manage)
Wants: Human desires for goods and services
Needs: Necessities and essential for survival
When purchasers have the necessary means to buy a good
Demand:
service or product and is backed by purchasing power.
Value to the decision maker of the best alternative that
Opportunity Cost: could have been chosen but was not. The value of the best
forgone opportunity. ( every choice made )
Problem resource
Decision about what to produce.
allocation:
Conditional law that states that the quantity demand will
Law of demand: increase when price falls, provided all other thing remain
constant/the same.
Ceteris paribus Condition where all other factors except one stays the
condition: same.
Mental inclination or prejudice that influences judgment or
Biased thinking: decision-making, often resulting in unfair or irrational
conclusions.
Fallacy of Erroneous belief that what is true for one individual or part of
composition: a group is necessarily true for the entire group or system.
Latin for "after this, therefore because of this," it's a logical
Post hoc ergo
fallacy that assumes a causal relationship between two
propter hoc:
events just because one happened after the other.
Correlation is a statistical relationship between two
Correlation and
variables, while causation implies that one variable directly
causation:
influences the other.
A plan or timetable that outlines events, activities, or tasks
Schedule:
to be carried out at specific times.
Functional The mathematical or logical relationship between two or
relationship: more variables, often expressed as an equation or formula.
, A mathematical representation that describes the
Behavioural
relationship between variables in behavioural or social
equation:
sciences, such as economics or psychology.
A visual representation of data, showing the relationship
Graph: between variables through points, lines, bars, or other
graphical elements.
A state of balance or stability in a system where opposing
Equilibrium:
forces or influences are in equal proportion.
A relationship between two variables where an increase in
Direct
one variable corresponds to an increase in the other, and
relationship:
vice versa.
A relationship between two variables where an increase in
Inverse
one variable corresponds to a decrease in the other, and
relationship:
vice versa.
The point at which a line or curve intersects the y-axis
Intercept: (vertical axis) on a graph, representing the value of the
dependent variable when the independent variable is zero.
The measure of the steepness of a line on a graph, indicating
Slope: the rate of change of the dependent variable with respect to
the independent variable.
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