COMM 220 Study Guide - Quiz Guide: Externality, Complementary Good, Indifference Curve
25 Jan 2015
School
Department
Course
Professor
Document Summary
Time series: a set of measurements made sequentially at different points. Cross-section data: values for different variables recorded at a point in time. Longitudinal data: follow the same unit of observation through time. Ex: fuel price index = 0. 6 x oil price index + 0. 25 x natural gas price index. Nominal price index: based on current $ price. Positive economics: statement can be measured or tested. If price of one good increases, the demand for the other decreases. ex: electronic readers and electronic books. Substitute goods: are consumed in lieu of each other. If the price of one good increases, the demand for the other increases ex: electronic books and paper books. As income rise, the demand for normal goods, like restaurants or clothing, rises. As income rise, the demand for inferior goods, like public transit and laundromats, falls. Price controls: they are government rules or laws that inhibit the adjustment of price to clear markets:
