chapter two Flashcards
1
Q
Economists play two roles
A
- as a scientist: try to explain the world as it is
- policy advisors: prescribe the world as it should be
2
Q
Microeconomics
A
study of households and firms and how they interact in the market
3
Q
Macroeconomics
A
study of economy-wide phennomena
4
Q
positive economics
A
based on fact
5
Q
normative economics
A
prescribes the world. uses opinion