Micro Chapter 2 Flashcards Preview

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Flashcards in Micro Chapter 2 Deck (14):
1

Steps of Flow diagram with cash

Cash starts at
consumer
store
firm
factory

2

What does PPF stand for

Production possibility frontier

3

Steps of a Circular Flow Diagram

Factory
Firm
Store
Consumer

4

What are the 2 Economic Models

Circular Flow
PPF

5

What is the Role of Assumptions

Breaking down a problem and task

6

What are 3 things that economists disagree on?

Scientific judgements
Values
Perception versus Reality

7

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

Not feasible

8

Normative statement

How it should be

9

Economist Policy Advisor

Using positive and normative statements

10

The production possibility frontier (PPF) is

the maximum production of products

11

Positive Statement

How it is

12

Inefficient

When production falls below the PPF line

13

Observation Theory

analyzing past data, events and tasks

14

Steps of Flow diagram with product

Factory
Firm
Store
Consumer

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