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- 2. In this chapter, look for the answers to these questions: What are economists’ two roles? How
- 3. THINKING LIKE AN ECONOMIST The Economist as Scientist Economists play two roles: 1. Scientists: try to
- 4. THINKING LIKE AN ECONOMIST Assumptions & Models Assumptions simplify the complex world, make it easier to
- 5. THINKING LIKE AN ECONOMIST Some Familiar Models A road map
- 6. THINKING LIKE AN ECONOMIST Some Familiar Models A model of human anatomy from high school biology
- 7. THINKING LIKE AN ECONOMIST Some Familiar Models A model airplane
- 8. THINKING LIKE AN ECONOMIST Some Familiar Models The model teeth at the dentist’s office
- 9. THINKING LIKE AN ECONOMIST Our First Model: The Circular-Flow Diagram The Circular-Flow Diagram: a visual model
- 10. THINKING LIKE AN ECONOMIST Factors of Production Factors of production: the resources the economy uses to
- 11. THINKING LIKE AN ECONOMIST FIGURE 1: The Circular-Flow Diagram Households: Own the factors of production, sell/rent
- 12. THINKING LIKE AN ECONOMIST FIGURE 1: The Circular-Flow Diagram
- 13. THINKING LIKE AN ECONOMIST Our Second Model: The Production Possibilities Frontier The Production Possibilities Frontier (PPF):
- 14. PPF Example Producing one computer requires 100 hours labor. Producing one ton of wheat requires 10
- 15. THINKING LIKE AN ECONOMIST A B C D E PPF Example
- 16. A. On the graph, find the point that represents (100 computers, 3000 tons of wheat), label
- 17. A C T I V E L E A R N I N G 1 Answers
- 18. A C T I V E L E A R N I N G 1 Answers
- 19. THINKING LIKE AN ECONOMIST The PPF: What We Know So Far Points on the PPF (like
- 20. THINKING LIKE AN ECONOMIST The PPF and Opportunity Cost Recall: The opportunity cost of an item
- 21. THINKING LIKE AN ECONOMIST The PPF and Opportunity Cost The slope of a line equals the
- 22. A C T I V E L E A R N I N G 2 PPF
- 23. A C T I V E L E A R N I N G 2 Answers
- 24. THINKING LIKE AN ECONOMIST Economic Growth and the PPF With additional resources or an improvement in
- 25. THINKING LIKE AN ECONOMIST The Shape of the PPF The PPF could be a straight line,
- 26. THINKING LIKE AN ECONOMIST Why the PPF Might Be Bow-Shaped As the economy shifts resources from
- 27. THINKING LIKE AN ECONOMIST A Why the PPF Might Be Bow-Shaped At point A, most workers
- 28. THINKING LIKE AN ECONOMIST B Why the PPF Might Be Bow-Shaped At B, most workers are
- 29. THINKING LIKE AN ECONOMIST Why the PPF Might Be Bow-Shaped So, PPF is bow-shaped when different
- 30. THINKING LIKE AN ECONOMIST The PPF: A Summary The PPF shows all combinations of two goods
- 31. THINKING LIKE AN ECONOMIST Microeconomics and Macroeconomics Microeconomics is the study of how households and firms
- 32. The Economist as Policy Advisor As scientists, economists make positive statements, which attempt to describe the
- 33. A C T I V E L E A R N I N G 3 Identifying
- 34. A C T I V E L E A R N I N G 3 Answers
- 35. A C T I V E L E A R N I N G 3 Answers
- 36. THINKING LIKE AN ECONOMIST Why Economists Disagree Economists often give conflicting policy advice. They sometimes disagree
- 37. THINKING LIKE AN ECONOMIST Propositions about Which Most Economists Agree (and % who agree) A ceiling
- 38. THINKING LIKE AN ECONOMIST Propositions about Which Most Economists Agree (and % agreeing) The gap between
- 39. FYI: Who Studies Economics? Ronald Reagan, President of the United States Barbara Boxer, U.S. Senator Sandra
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