Microeconomics - Foundation of Economics

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Across
  1. 2. Possibilities Curve(PPC) It shows the combinations of two goods or services that an economy can produce with full employment of resources and constant technology over a period of time.
  2. 4. Economics It seeks to explain what is happening without any value judgement. They can be tested against facts or proven to be right or wrong.
  3. 6. Problem in Economics It deals with the problem of resource allocation. It concerns 3 questiions. What to produce? How to produce? For whom to produce?
Down
  1. 1. Economics It involves comments and subjective value judgements. Normative Statements are never testable.
  2. 3. Cost The next best alternative foregone when an economic decision is made.
  3. 5. It refers to the case that limited resources are not enough to satisfy unlimited human wants.