How does the use of a very simplified model of the economy such as those found in a production possibilities frontier help you to understand the economy? Did you find it useful?
I found the information very useful because it helped me visualize how the trade offs work and how supply and demand are very important for the economy.
Give an example of something you believed or heard frequently about the economy before reading this chapter. Did your belief/the comments lead to positive or normative statements? Why? And why does it matter? An example of this that is in the news a lot is international trade – we hear it talked about in terms of winners and losers, but when you make a trade with your local grocery store you both win. In fact, trades don’t occur unless both the buyer and the seller “win”. For other economic “myths” just google “economic myths”.
Every time I heard the word economy I always thought about money, and how the government was able to finance it. By reading the book I have learned that there is more to that. It is not only for government but households, businesses, etc. It is more about people’s behavior, including their skills to make important decisions, strategies. The wealth and resources especially in terms of production.
Netsy's Thoughts 