What does specialization and trade allow for
What is increase the productivity of a nation’s resources and allows for greater total output
shows expenditures and incomes that result from decision makers’ choices and
What is the circular flow model
Study of small economic units such as individuals, firms, and industries
What is the MICROeconomics-
participating in an open economy and trading resources in order to maximize production and meet demands
What is a voluntary exchange
are individuals or people living together as decision-making units.
Households
Study of the large economy as a whole or economic aggregates
MACROeconomics-
one person (nation) is more productive than another person (nation) in several or even all activities.
Absolute advantage
are institutions that organize production of goods and services
What is a business
Based on facts. Avoids value judgements
What is Positive Statements-
ability of a person (nation) to perform an activity or produce a good or service
What is a Comparative advantage
is any arrangement that brings buyers and sellers together and enables them to do business
What is a market
is the science of scarcity. It is the study of how people make choices when resources are limited.
Economics
Includes value judgements (what ought to be).
What is Normative Statements-
Beyond utilizing the output method, comparative advantage can be determined through what is referred to as the
What is a input method
The federal government finances its expenditures by
What is a collecting taxes