AP Macroeconomics and AP Microeconomics, Chapter 2 Flashcards
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| 7223073178 | circular-flow diagram | a visual model of the economy that shows how dollars flow through markets among households and firms | 0 | |
| 7223075928 | production possibilities frontier | 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 | 1 | |
| 7223082701 | microeconomics | the study of how households and firms make decisions and how they interact in markets | 2 | |
| 7223084449 | macroeconomics | The study of the economy as a whole | 3 | |
| 7223087458 | positive statements | claims that attempt to describe the world as it is | 4 | |
| 7223088390 | normative statements | claims that attempt to prescribe how the world should be | 5 | |
| 7223096123 | consumer goods | Products people buy for personal use | 6 | |
| 7223097242 | capital goods | Buildings, machines, technology, and tools needed to produce goods and services. | 7 |