Reading...
Play button
Play button
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
|
Cirular-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.
|
