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11 Cards in this Set
- Front
- Back
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Define factors of production |
Resources (labor land and capital ) not used up in production. Ex. Rivet guns used in installing rivets on a jet |
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2 ways pff shifts outward (signifying economic growth ) |
Increase in factors of production Or increase in technology |
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Comparative advantage |
When opportunity Cost of producing something is lower for you -is the source of gains from trade |
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Define barter |
Simplest economic transaction —one party trades a good or service for another good or service without the use of money |
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Define household |
Group of people that share their income |
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Define firm |
Org. That produces goods and service for sale and employs members of households. |
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2 markets in circular flow diagram - |
Markets for goods and services + factor markets |
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Function of pff |
Illustrate how much of one good and economy must give up to get more of another good only when resources are used efficiently in |
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Normative vs positive economics |
Normative - opinion , can’t test Positive- can test |
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Why economists disagree |
1. Media exaggerated differences in views among economists 2. Politics 3. Difference in opinion or values 4. Models used are different simple and not 100% accurate |
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When economists disagree , they usually agree with the most _____ method / theory |
Efficient |
