1) 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?
Models such as the production possibilities frontier can be very useful in understanding the economy. I found this model useful to understand how maximum productivity can be achieved in different types of scenarios.
2) 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?
Before reading this chapter I always heard that our country was dangerously deep in debt. This is a positive statement considering that the U.S. is almost 26 trillion dollars in debt. But this is also partly a normative statement because the U.S. is not dangerously deep in debt, considering the global pandemic and that the GDP of the U.S. is close to 20 trillion dollars.
