ch 2

two roles of economists

scientist - try to explain the world

policy advisors
production possibilities frontier

a graph that shows the combo of output that the economy can possibly produce given the available factors of productions
opportunity cost

cost of one good measured in terms of another
the ppf shows concept of
- scarcity and economic growth
- opp cost
macroeconomics
- economy wide phenom
- unemployment
- inflation
microeconomics

study of how households and firms make decisions
positive statements
- describe the world as it is
- can be confirmed or refuted
normative statements
- prescribe how world should be
- cant be confirmed or refuted

Author

jillmray

67966

Card Set

ch 2

Description

thinking like an economist

Updated

2011-02-21T23:52:49Z

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