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