MicroEconomics Word Scramble
|
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
| Term | Definition |
| Circular-Flow Diagram | A visual model of the economy that shows how dollars flow through markets among households and firms |
| Production Possibilities Frontier | A graph that shows the combination of output that the economy can possibly produce given the available factors of production and the available production technology |
| Efficient Levels of Production | The Economy is getting all it can; from the scarce resources available; the only way to produce less of the other good |
| Inefficient levels of production | Points "Inside" production possibilities frontier |
| Opportunity Cost | Give up producing the other good;slope of the production possibilities |
| Microeconomics | The study of how households and firms makes decisions; and how they interact in markets |
| Macroeconomics | The study of economy-wide phenomena, including inflation, unemployment, and economic growth |
| Decision Makers | Firms and households |
| Markets | For gods and services For factors of production |
| Firms | Produce goods and services Use factors of production / inputs |
| Households | Own factors of production Consume goods and services |
| Markets for goods and Services | Firms – sellers Households – buyers |
| Markets for inputs | Firms – buyers Households - sellers |
| Production possibilities frontier | a graph-combinations of output that the economy can possibly produce-Given the available Factors of production Production technology |
| Efficient Levels Of Production | The economy is getting all it can From the scarce resources available Points on the production possibilities frontier Trade-off: The only way to produce more of one good Is to produce less of the other good |
| Inefficient levels of production | Points inside production possibilities frontier |
| Opportunity cost of producing one good | Give up producing the other good Slope of the production possibilities frontier |
| Positive Statements | Claims that attempt to describe the worlds as it is: for of a fact |
| Normative Statements | Claims that attempt to prescribe how the world should be; more of an opinion |
Created by:
robtyson26
Popular Economics sets