1.
A hypothesis that has been proven false but is still accepted by many people because it appears to be true.
2.
A mistaken belief that what is good for an individual is automatically good for everyone, or what is good for everyone is good for the individual.
3.
A mistaken belief that what occurs before some event is logically the cause of it.
4.
A mistaken belief, based on oversimplification, that a particular event has one cause rather than several causes.
5.
As used in graphs, the point at which the vertical and horizontal axes meet.
6.
A negative association between two variables where when one variable is increased the other decreases, and when one variable is decreased the other increase.
7.
A positive association between two variables where when one variable is increased the other variable also increases, and when one variable is decreased the other also decreases.
8.
The value or benefit that must be given up to achieve something else. For example, by choosing to produce item A, a business gives up the benefit that it could have gained from producing item B using the same resources.
9.
(curve)A graphical representation of the production choices facing an economy.
10.
The sacrifice of one resource or production choice for another.
11.
Those goods or services that an economy produces to satisfy human needs.
12.
Goods, such as tools or machinery, used to produce consumer goods.
13.
The cost of producing one item, A, expressed in terms of the numbers of another item, B, which must be given up to produce A (that is, A’s opportunity cost).
14.
(law of) The increase in the relative cost of producing more of item A, measured by the numbers of another item, B, that could be produced with the same resources.
15.
The curve on a production possibilities graph representing the maximum numbers of two items that can be produced with a given amount of resources.
16.
The products produced by using resources or inputs such as land, labour, or capital.
17.
(law of) The eventual decline in the rate of extra outputs produced that occurs when one input used in production of the output is held constant and the others are increased.
18.
A productive resource (such as land, labour, or capital) used to produce an output.
19.
(law of) The increase in the rate of extra outputs produced when all inputs used in production are increased and no inputs are held constant.
