| interactive activity
Match each of the terms on the left with its definition on the right. Click on the term first and then click on the matching definition. As you match them correctly they will move to the bottom of the activity.
Model Other things equal assumption Production possibility frontier Factors of production Technology Comparative advantage Absolute advantage Barter Circular- Household Firm Markets for goods and services Factor markets Income distribution Positive economics Normative economics Forecast | markets in which firms buy the resources they need to produce goods and services. a simplified representation of a real situation that is used to better understand real- a person or a group of people who share income. the resources used to produce goods and services. the way in which total income is divided among the owners of the various factors of production. an organization that produces goods and services for sale. a simple prediction of the future. the assumption that all other relevant factors remain unchanged. a diagram that represents the transactions in an economy by flows around a circle. the branch of economic analysis that describes the way the economy actually works. a transaction in which people directly exchange goods or services that they have for goods or services that they want. the technical means for the production of goods and services. illustrates the trade- markets in which firms sell goods and services that they produce to households. the advantage an individual or country has in producing a good or service if the opportunity cost of producing the good or service is lower for that individual or country than for others. the branch of economic analysis that makes prescriptions about the way the economy should work. the advantage an individual or country has in an activity if that individual or country can do it better than others. |