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9 Cards in this Set
- Front
- Back
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Circular-flow diagram |
A visual model of the economy that shows how dollars flow through markets among households and firms. |
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Production Possibilities Frontier Model |
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. |
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Microeconomics |
The study of how households and firms make decisions and how they interact in markets. |
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Macroeconomics |
The study of economy-wide phenomena including inflation, unemployment, and economic growth. |
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Economists as Scientists |
Try to explain the world |
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Economists as Policy Advisors |
Try to improve the world |
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Positive Statements |
Claims that attempt to describe the world as it is. |
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Normative Statements |
Claims that attempt to prescribe how the world should be. |
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Factors of Production/Factors/Inputs/Resources |
Labor (L), Capital (K), Human Capital (H), Natural Resources (N) |
