- 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?
- 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”.
- These kind of models help you be able to find out how much you can produce and how much you would gain if you choose to trade. It is also a good way to be able to see a chart to help understand the way that the production and consumption works. I think that the most important part of this is being able to understand the trade-off, I found it very useful and easy to read.
- I thought that the economy went off just the money but there is so many things that generate the money I don’t know if just always growing up I thought you would just get money for working but I never really knew where the money would come from and its so crazy that so many things play parts into how the economy works. Finding out about all of these things and charts that help understand are so incredible, the trades are the most important thing to me because I feel like trade is really one of the most important factors to have a good economy. Trade is important because without trade it would be impossible to be able to have a wide variety of items to be able to seel and gain more money from.
Macroeconomics 