Same Example Chapter 2

A production possibilities frontier shifts outward when

The economy experiences economic growth

Factors of production are

Used to produce goods and services

Microeconomics

How individual households and firms make decisions

Which arrow shows the flow of land, labor, and capital?

C

What is the opportunity cost of moving from point A to point B?

30-10=20

Which arrow represents the flow of goods and services?

B

In building economic models, economists often omit

Details

Economics sometimes give conflicting advice because

Economists have different values and scientific judgement

Macroeconomics

Economy-wide phenomena

Production is efficient if the economy is producing?

Highest point amount

A statement describing how the world should be

Normative statement

Prices rise when the quantity if money rises rapidly

Positive Economic Statement