Term
|
Definition
| a visual model of the economy that shows how dollars flow through markets among households and firms |
|
|
Term
| production possibilities frontier |
|
Definition
| a graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology |
|
|
Term
|
Definition
| the study of how households and firms make decisions and how they interact in the markets |
|
|
Term
|
Definition
| the study of economy wide phenomena, including inflation, unemployment, and economic growth |
|
|
Term
|
Definition
| claims that attempt to describe the world as it is |
|
|
Term
|
Definition
| claims that attempt to prescribe how the world should be |
|
|
