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2.5 KEY TERMS
| 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.
Question
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 | a simplified representation of a real situation that is used to better understand real- 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. a simple prediction of the future. an organization that produces goods and services for sale. a diagram that represents the transactions in an economy by flows around a circle. the way in which total income is divided among the owners of the various factors of production. 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. markets in which firms sell goods and services that they produce to households. a person or a group of people who share income. markets in which firms buy the resources they need to produce goods and services. illustrates the trade- the technical means for the production of goods and services. the assumption that all other relevant factors remain unchanged. the resources used to produce goods and services. 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. |