Economics #2

Order the Circular Flow Diagram (Money)

Households>Markets for goods and services>firms/factories>markets for factors od production>households

Order the Circular Flow Diagram (Products)

Households>Markets for factors of production>firms/factories>markets for goods and services>households

Production Possibilities Frontier

Producing more of one product means producing significantly less of the other. Must cut down because of certain specialized workers in limited spaces.

3 reasons why Economists don’t get along

Different Economic Ideologies

Corporate Econ vs. Govt Econ

Economic experiments cannot be conducted

Why is it that sound government policies fail to be implemented

Political conflicts such as the wealthy having their way, politicians are practically their puppets and are more concerned about re-election than what is right.

2 groups of people: wealthy and poor, how can they benefit each other

Opportunity costs play a big part in what these groups do for each other. Instead of wasting time doing labor, they hire the poor and spend time doing what they’re best at.