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-flow diagram Household Firms Markets for goods and services Factor markets Income distribution Positive economics Normative economics Forecast | 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 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 markets in which firms buy the resources they need to produce goods and services the assumption that all other relevant factors remain unchanged the resources used to produce goods and services a simple prediction of the future a person or a group of people who share income the advantage an individual or country has in an activity if that individual or country can do it better than others illustrates the tradeoffs facing an economy that produces only two goods. It shows the maximum quantity of one good that can be produced for any given quantity produced of the other an organization that produces goods and services for sale the technical means for the production of goods and services the way in which total income is divided among the owners of the various factors of production a simplified representation of a real situation that is used to better understand reallife situations a transaction in which people directly exchange goods or services that they have for goods or services that they want markets in which firms sell goods and services that they produce to households. the branch of economic analysis that makes prescriptions about the way the economy should work |
Model, p. 26
Other things equal assumption, p. 26
Production possibility frontier, p. 28
Factors of production, p. 32
Technology, p. 32
Comparative advantage, p. 34
Absolute advantage, p. 36
Barter, p. 37
Circular-flow diagram, p. 37
Household, p. 37
Firm, p. 37
Markets for goods and services, p. 37
Factor markets, p. 38
Income distribution, p. 38
Positive economics, p. 40
Normative economics, p. 40
Forecast, p. 40