ch 2

  1. two roles of economists
    scientist - try to explain the world

    policy advisors
  2. production possibilities frontier
    a graph that shows the combo of output that the economy can possibly produce given the available factors of productions
  3. opportunity cost
    cost of one good measured in terms of another
  4. the ppf shows concept of
    • scarcity and economic growth
    • opp cost
  5. macroeconomics
    • economy wide phenom
    • unemployment
    • inflation
  6. microeconomics
    study of how households and firms make decisions
  7. positive statements
    • describe the world as it is
    • can be confirmed or refuted
  8. normative statements
    • prescribe how world should be
    • cant be confirmed or refuted
Card Set
ch 2
thinking like an economist