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