Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Thinking Like an
Economist
THE ECONOMIST AS A
SCIENTIST
The economic way of thinking . . .
Involves thinking analytically and objectively.
Makes use of the scientific method.
Economic Models
MARKETS
FOR
GOODS AND SERVICES
Firms
sell
Goods
Households
buy
and services
sold
Revenue
HOUSEHOLDS
Buy and consume
goods and services
Own and sell factors
of production
FIRMS
Produce and sell
goods and services
Hire and use factors
of production
Factors of
production
Wages, rent,
and profit
Spending
Goods and
services
bought
MARKETS
FOR
FACTORS OF PRODUCTION
Households sell
Firms buy
Labor, land,
and capital
Income
= Flow of inputs
and outputs
= Flow of dollars
Firms
Households
Firms sell
Households buy
Households sell
Firms buy
3,000
D
C
2,200
2,000
A
Production
possibilities
frontier
1,000
300
600 700
1,000
Efficiency
Tradeoffs
Opportunity Cost
Economic Growth
Quantity of
Cars
Produced
Copyright2003 Southwestern/Thomson Learning
Quantity of
Computers
Produced
4,000
of the economy.
How households and firms make decisions and how
they interact in specific markets
3,000
2,100
2,000
whole.
700 750
1,000
Quantity of
Cars Produced
Summary
Summary
Summary
Summary