Lecture Macroeconomics in context: A European perspective - Chapter 2: Useful Tools and Concepts. In this chapter you will learn: Distinguish and differentiate among the different methods of investigation; understand the concept of economic tradeoffs (or opportunity costs) in the face of abundance or scarcity; interpret and apply the production possibilities frontier; distinguish the different meanings of the term “market,” and describe how the market is understood in the basic neoclassical model; describe the institutional requirements of markets; identify the advantages and limitations of markets. |
