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6 Cards in this Set
- Front
- Back
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circular-flow diagram
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a visual model of the economy that shows how dollars flow through markets among households and firms
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production possibilites frontier
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a graph that shows the comninations of output that the economy can possibly produce given the available factors of production and the available prodcution technology
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microeconomics
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the study of how housefolds and firms make decisions and how they interact in markets
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macroeconomics
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the study of economy-wide phenomena, includintg inflation, unemployment, and economic growth
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positive statements
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claims that attempt to describe the world as it is
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normative statements
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claims that sttempt to prescribe how the world should be
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