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INDIFFERENCE CURVE: A curve that graphically depicts various combinations of goods that generate the same level of utility to a consumer. In other words, a consumer is "indifferent" among any of the bundles because they all provide the same satisfaction. Indifference curves are combined with a budget line or constraint for indifference curve analysis used to explain many aspects of demand, including the slope of the demand curve and the income and substitution effects.

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I: The standard abbreviation for investment expenditures by the business sector, especially when used in the study of macroeconomics. This abbreviation is most often seen in the aggregate expenditure equation, AE = C + I + G + (X - M), where C, G, and (X - M) represent expenditures by the other three macroeconomic sectors, household, business, and foreign.

     See also | investment | investment expenditures | household sector | gross private domestic investment | aggregate expenditures | consumption expenditures | government purchases | net exports | C | G | X | M |


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ABSTRACTION

Simplifying the complexities of the real world by ignoring (hopefully) unimportant details while doing economic analysis. Abstraction is an essential feature of the scientific method. Hypothesis verification, model construction, and comparative static analysis are not possible without abstraction.

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Today, you are likely to spend a great deal of time at a crowded estate auction wanting to buy either a flower arrangement with anything but tulips for your grandfather or a birthday greeting card for your mother that doesn't look like a greeting card. Be on the lookout for broken fingernail clippers.
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The average length of a "business lunch" is about 36 minutes.
"A ship ought not to be held by one anchor, nor life by a single hope. "

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