Factors of production
What is Capital?
Tools, factories, and machines.
What is the opportunity cost of my lunch if I had to choose between a pizza or a hamburger and I chose the pizza?
The Hamburger
Give an example of competition using businesses in Ft. Collins?
What is a tariff?
A tax placed on goods that are imported from another country.
What happens if a business doesn't sell any of their product?
They will fail or go out of business.
What is someone who comes up with ideas, takes all the risk in business called?
Entrepreneur
What is the opportunity cost between sleeping and doing homework and I chose to sleep?
Homework
Who makes decisions in our economy?
Consumers
What is a good or service brought into a country from another country for sale called?
An Import
If a country sends its locally made cars to another country for sale, those cars are considered..
Exports
What is human effort in the 4 factors of production called?
Labor
Why does scarcity force people and governments to make trade-offs?
Because resources are limited while human wants are virtually unlimited.
The Law of Demand states that as prices rise, consumers do what?
Buy less
What is a good or service sent to another country for sale called?
An export.
In a market economy, who primarily makes decisions about what to produce and consume?
Land
What is a consumer?
A person who purchases goods and services for their personal use.
The Law of Supply states that as prices rise, producers are willing to
make more
What is total value of all final goods and services produced in a country in one year called?
Gross Domestic Product (GDP)
What happens to price of a product if the demand for it increases but the supply stays the same?
The price will increase (go up).
Bonus ROUND! Name local resources in Ft. Collins or Colorado
Wheat, soybeans, beets, cows, water, wind.
What is a producer?
A person or company that creates or supplies goods and services.
Supply decreases (Orange crop dies because of a hurricane) what is the effect on prices?
Goes up
How does a city pay for their roads, snow removal and firemen?
Taxes
If the government places a high tariff on imports from China (clothing) how might this affect sales in the U.S.?
Sales will most likely go down.