Chapter Two Thinking Like An Economist Flashcards
1
Q
Macroeconomics
A
Study of economy why phenomenon including inflation, unemployment, and economic growth.
2
Q
Positive statements
A
Claims that attempt to describe the world as it is
3
Q
Microeconomics
A
The Study of how households and firms make decisions and how they interact in markets
4
Q
Circular-flow diagram
A
A visual model of the economy that shows how dollars flow through markets
5
Q
Production possibility frontier
A
A graph that shows that combination of output that the economy can possibly produce given the available factors of production and the available production technology
6
Q
Normative statements
A
Claims that attempt to prescribe how the world should be
