ECON 1010 Study Guide - Quiz Guide: Environment And Climate Change Canada, Department Of Finance Canada, Opportunity Cost
Document Summary
The economist as scientist, economists play two roles, scientists: try to explain the world, policy advisors: try to improve it. Very unrealistic, but simplifies the problem and yields useful insights about the more complicated real world: economists use models to study economic issues. A model is a highly simplified representation of a more complicated reality: some familiar models. A model of human anatomy from high school biology class: some familiar models. The (cid:373)odel teeth at the de(cid:374)tist"s offi(cid:272)e: the circular-flow diagram: Our first model: the circular-flow diagram: a visual model of the economy, shows how dollars flow through markets among households and firms. I(cid:374)(cid:272)ludes t(cid:449)o types of (cid:862)a(cid:272)to(cid:396)s(cid:863): households firms. Includes two markets: the market for goods and services the (cid:373)a(cid:396)ket fo(cid:396) (cid:862)fa(cid:272)to(cid:396)s of p(cid:396)odu(cid:272)tio(cid:374)(cid:863: factors of production, the factors of production are the resources that the economy uses to produce goods & services.
