macro Flashcards
Marginal
extra, additional
What is Marginal change?
change to the plan
What is Marginal analysis?
comparing marginal benefits and costs
Positive analysis
how is the world
fact-based, how the world is
normative analysis
opinion based, how the world should be
What is Economics?
decision making
Microeconomics
individual markets
macroeconomics
global markets
what decision do households make
what to buy
what decisions do firms make
how much to produce
Who runs the market
buyers and sellers on a product
how is efficiency described?
maximum benefits from scarce resourses
what is equity?
resources given equally
what is equality?
everyone getting an equal chance
opportunity cost
what you give to get up
comparative adv
produce at a lower opportunity cost
absolute advantage
doing more given the same
what does the circular flow diagram show?
visual of market economy
what is labor?
ability to work
human capital
human skills
factors of production
labor, land, human capital, entr
trade offs
if you get something you have to give something up
PPF inside
inefficient
PPF
efficient
