Chapter II "Thinking Like An Economist" Flashcards Preview

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Flashcards in Chapter II "Thinking Like An Economist" Deck (7)
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1
Q

The economy is simplified to only show a limited type of decision makers

A

Circular-flow diagram

2
Q

Land, labor, Capitol; help firms produce goods

A

Factors of Production

3
Q

Households are buyers and firms are sellers

A

Markets for goods and services

4
Q

Households are sellers and firms are buyers

A

Market for factors of production

5
Q

Represents the potential, various amounts of production capacity between multiple industries. Often have “bowed shape.”

A

Production Possibilities Frontier

6
Q

Study of how Households and Firms make decisions and interact in markets.

A

Microeconomics

7
Q

Study of economy-wide phenomena

A

Macroeconomics