Micro Chapter 2

Question 1

Steps of Flow diagram with cash

Answer 1

Cash starts at 
consumer
store
firm  
factory

Question 2

What does PPF stand for

Answer 2

Production possibility frontier

Question 3

Steps of a Circular Flow Diagram

Answer 3

Factory
Firm
Store
Consumer

Question 4

What are the 2 Economic Models

Answer 4

Circular Flow

PPF

Question 5

What is the Role of Assumptions

Answer 5

Breaking down a problem and task

Question 6

What are 3 things that economists disagree on?

Answer 6

Scientific judgements
Values
Perception versus Reality

Question 7

When production goes above the PPF line it is—- ——-

Answer 7

Not feasible

Question 8

Normative statement

Answer 8

How it should be

Question 9

Economist Policy Advisor

Answer 9

Using positive and normative statements

Question 10

The production possibility frontier (PPF) is

Answer 10

the maximum production of products

Question 11

Positive Statement

Answer 11

How it is

Question 12

Inefficient

Answer 12

When production falls below the PPF line

Question 13

Observation Theory

Answer 13

analyzing past data, events and tasks

Question 14

Steps of Flow diagram with product

Answer 14

Factory
Firm
Store
Consumer