VOCAB
OPPORTUNITY COST
ECONOMIC SYSTEMS
PPC
RANDOM
100
Land, Labor, Capital and Entrepreneurship
Factors of Production
100
The opportunity cost of moving production from Point A to Point E.
100 cans of cola
100
Government controls all aspects of the economy.
Command Economy
100
What point A on this graph represents.
Efficiency / Efficient use of resources
100
Three questions all societies must answer.
What goods/services to produce?
How to produce the goods/services?
Who should receive the goods and services?
200
Lasts 3 years or more with regular use
Durable Good
200
The opportunity cost of moving from production from Point A to Point C.
5 Boats
200
The need to survive motivates people to hunt, gather or farm.
Traditional Economy
200
What Point E on this graph represents.
Impossible production combination
200
The value of the next best choice given up when a choice is made.
Opportunity Cost
300
Assets that businesses use to produce goods and services
Capital Goods
300
The opportunity cost of moving production from Point E to Point C.
20 chocolate bars
300
Private individuals own the property and producers can make whatever products they want.
Market economy
300
Inefficiency to efficient.
300
Economic system where there is no competition because the government is the only producer.
Command Economy
400
The act of choosing one option over another
Trade-off
400
It takes 2 hours to complete one ECON project and 4 hours to do one PHYSICS project. What is the opportunity cost of completing one ECON project?
1/2 of a PHYSICS project
400
Most modern countries have this type of economic system.
Mixed Economy
400
When the entire PPC graph shifts to the right, this represents ________________________.
Economic growth; increase in resources for both products
400
Scarcity requires choices (trade-offs) to be made and those trade-offs create this.
Opportunity Costs
500
How well something satisfies someone's wants/needs.
Utility
500
The opportunity cost of moving from Point B to Point A.
3 Trucks
500
This economic system can result in extremely large gaps between wealthy and poor; equality is a challenge in this pure system.
Market / Free Enterprise Economy
500
When the entire PPC graph shifts left, this represents ____________________
Economic decline; loss of resources for both products
500
The more of an item you acquire, the less useful or enjoyable every additional bit of it becomes. This is the law of ______________________________
Diminishing Marginal Utility