Chapter 2 Flashcards
1
Q
A
2
Q
model
A
- a simplified representation of a real situation that is used to better understand real-life situations
3
Q
tax models
A
- large mathematical computer programs to assess how the proposed changes would affect different types of people
4
Q
other things equal assumption
A
- means that all othe relevant factors remained unchanged
- important assumption when building economic models
5
Q
production possibility frontier
A
- illustrates the trade-offs facing an economy that produces only two goods
- shows the maximum quantity of one good that can be produced for any give quantity produced of the other`
