Flashcards
Tools of Economic Analysis
Cards in this deck (10)
- 1What is a behavioural law?A sensible theoretical relationship not rejected by evidence over a long period.
- 2What is time series data?A sequence of measurements of the same variable at different points in time.
- 3What is cross-section data?A record at a point in time the way an economic variable differs across different individuals or groups of individuals.
- 4What is panel data?A record of observations over multiple time periods for the same individuals or group of individuals.
- 5What is an index number?An index number expresses data relative to a given base value.
- 6Formula for index price(Chosen year/Base year) x 100
Example: iPhones were $599 in the base year of 2007. 599/599 x 100 = index 100
In 2015, the newest iPhone is $199. 199/599 x 100 = index 33.22 - 7Define 'Consumer Price Index'The CPI measures changes in the cost of living by looking at the cost of a standard 'shopping basket' of goods.
- 8Define 'Inflation Rate'The annual rate of change of the consumer price index.
- 9What's the difference between nominal and real values?Nominal values are measured in the prices ruling at the time of measurement.
Real values adjust nominal values for changes in the price level. - 10Define 'The Purchasing Power of Money'An index of the quantity of goods that can be bought for £1.
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- Flashcards on the tools of economic analysis for South African students. (Made with love by a South African ECON1016 student at Wits University in 2015)
- Created by
- BryanTurner · Mar 2015
- Updated
- Jan 5, 2017
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