Resources
In terms of resources Mr. Wilson would be categorized as?
Labor
The second best choice you gave up when you chose the first best choice.
What is Opportunity Cost
When one country is better at making a product than another.
What is Absolute Advantage.
The President signs a bill making community college tuition-free, causing many auto workers to take classes to attain new skills? Analyze the automotive industry.
Supply-Right-Outward-Price Decreases-Quantity Increases.
All the alternatives that we give up whenever we choose one course of action over others?
Trade-offs
In terms of resources a truck would be categorized as?
Capital
When an economy operates inside the PPC/PPF.
What is Inefficiency or Underemployment.
The ability of an economy to produce a good at a lower opportunity cost than another country.
What is Comparative Advantage.
A massive storm in the North Atlantic Ocean destroys 75% of Scotland’s oil rigs? Analyze the capital good market.
Supply-Left-Inward-price increases-quantity decreases
Based on facts. Avoids value judgments (what is or what will be)?
Positive Economics
In terms of resources Phil Knight (Creator of Nike) would be categorized as?
Entrepreneur
Any point outside the PPC/PPF
What is Unattainable.
United States: 500 bushels of corn Mexico: 400 bushels of corn. Absolute Advantage?
What is the United States?
Coffee bean prices in Brazil skyrocket 150%. Analyze the market for coffee beans.
Movement on the Curve-Qd Decreases As Prices Increase (Inverse Relationship)
This result is because our wants are greater than our limited resources?
Scarcity
In terms of resources a factory building would be categorized as?
Capital
This means that the more you have of something, the less utility [satisfaction] you get from each new unit.
What is Diminishing Marginal Utility
United States: 100 cars 200 tomatoes France: 90 cars 100 tomatoes/ Comparative Advantage for Cars?
What is France?
Chinese engineers develop the new Car Assembly Line 2.0, doubling the productivity of Chinese workers? Analyze the market for Chinese cars.
Supply-Right-Outward-Price Decreases-Quantity Increases
Includes value judgment?
(what should or ought to be, essentially an opinion)?
Normative Economics
In terms of resources, minerals on the Moon would be categorized as?
Land
As production of a product increases, the cost to produce an additional unit of that product increases as well.
What is The Law of Increasing Opportunity Costs
If country A has an absolute advantage over country B which country benefits from trade?
Both
Italy hires American workers to come make cars in their factories, reducing car production time by 33%?
Supply-Right-Outward-Price Decreases-Quantity Increases
Economics studies the choices of?
Individuals
Firms
Governments