These own the factors of production and consume all the goods and services that the firms

produce.

He is the famous seventeenth century scientist and mathematician allegedly became intrigued
one day when he saw an apple fall from an apple tree. a.

This diagram represents the flows of goods and services between households and firms. a.
Circular-

Economists also use models to learn about the world but instead of being made of plastic, they
are most often composed of diagrams and equations.

The theory of consumer choice examines the tradeoffs that people face in their role as
consumers.

Households and firms interact in two types of markets wherein the markets for goods and
services, firms are buyers and households are sellers.

_______ also use models to learn about the world, but instead of being made of plastic, they are
most often composed of diagrams and equations.

This is the _______ production of a good if the individual can produce more than the other
individuals. A

_______ was an analysis of how decisions were made regarding the management of resources.

_______ influence on the development of microeconomics is through the work of Leon Walras.
Cournot

_______ developed an analysis of the moral system called The Theory of Moral Sentiments, then
an economic system called The Wealth of Nations. Adam Smith

_______ is if the quantity of the good demanded exceeds the quantity supplied at a zero price.
Economic good

This is a measurement of how expensive a good is in terms of units of some other good or
service.