Chapter 2 Thinking Like An Economist Flashcards
0
Q
Two types of markets
A
Market for goods and services
Market for factors of production
1
Q
Two types of actors
A
Households
Firms
2
Q
Factors of production
A
The resources the economy uses to produce goods and services
3
Q
Markets for goods and services
A
Firms sell
Households buy
4
Q
Households
A
Buy and consume GS
5
Q
Markets for factors of production
A
Households sell
Firms buy
6
Q
Firms
A
Produce and sell goods and services
Hire and use factors of production
7
Q
Microeconomics
A
The study of how households and firms make decisions and how they interact
8
Q
Macroeconomics
A
Study of economy wide phenomena including inflation
9
Q
Positive statement
A
Statement/observation
10
Q
Normative
A
Judges makes decision
Cannot be confined or refuted
