1. ECONOMIC ANALYSIS

2. HIDDEN FALLACIES POST HOC ERGO PROPTER Post Hoc Propter Hoc- “ it happened before this, therefore it happened after this” Ex- A occurred, then B occurred therefore, A caused B.

3. FALLACY OF COMPOSITION Fallacy of composition- a statement that is true for the individual but not for the group. Ex- 1. Atoms are not visible to the naked eye, humans are made up of atoms. Therefore, humans are not visible to the naked eye.

4. FALLACY OF SINGLE CAUSATION Fallacy of Single Causation- a single factor or person caused a particular event to occur E.x- because of the Great Depression, the stock market crashed Ex- because of all the McDonalds food the boys ate they got fat

5. LOADED TERMS Loaded Terms Words that have side effect meanings Ex. “right sizing” really means laying off employees Ex. “stimulus spending” which does not occur until the economy is on its way to recovery

6. GOALS FOR THE CANADIAN ECONOMY Factors that keep our country running: Political stability Reduced public debt Economic growth Increased productivity Equitable distribution of income Price Stability Full employment Viable balance of payments and stable currency Economic Freedom Environmental stewardship

7. GOALS FOR THE CANADIAN ECONOMY All these factors are needed to keep the economy afloat. All factors have tradeoffs, opportunity costs. i.e. trying to distribute income- everyone has different opinions on how money should be distributed

8. POSITIVE + NORMATIVE ECONOMICS Positive Normative Economics -Based on the analysis of factual information -Also known as “analytical” economics -Based on the expression of opinions that reflect values and beliefs -Known as “policy economics” Descriptive statements -Factual observations that can be verified or confirmed Statements - forecasts based on identified behaviour patterns and assumptions regarding whether these patterns will continue to change - Can be confirmed or refuted by continued observation and analysis Statement of opinions -Involve value judgements to articulate “what should be” -Cannot be confirmed -Require political decision making; focused on the common good or well being of a society Example- Canadian soft wood lumber sales to the Unites States are down 20% from last year Example- If income taxes are reduced, consumer spending will increase Example- Governments should provide affordable day care for working parents