Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
6 Cards in this Set
- Front
- Back
Circular-Flow Diagram
|
a visual model of the economy that shows how dollars flow through markets among households and firms
|
|
Production Possibilities Frontier
|
a graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology
|
|
Microeconomics
|
the study of how households and firms make decisions and how they interact in markets
|
|
Macroeconomics
|
the study of economy-wide phenomena, including inflation, unemployment, and economic growth
|
|
Positive Statements
|
claims that attempt to describe the world as it is
|
|
Normative Statements
|
claims that attempt to prescribe how the world should be
|