Scarcity
Opportunity Cost
Production Possibility Curve
3 Basic Economic Questions
Different Types Economic Systems
100
What is the definition of scarcity?
The fundamental economic problem of having seemingly unlimited human wants and needs in a world of limited resources.
100
What is the definition of opportunity cost?
The value of the best alternative forgone, in a situation in which a choice needs to be made between several mutually exclusive alternatives given limited resources.
100
What is the definition of a production possibility curve?
In economics, a production–possibility frontier (PPF), sometimes called a production–possibility curve, production-possibility boundary or product transformation curve, is a graph that shows the various combinations of amounts of two commodities that could be produced using the same fixed total amount of each of the factors of production.
100
What are the 3 basic economic questions?
What to produce, how to produce goods, and for whom goods are produced
100
What is type of economic system contains elements of the market and command systems, with elements of traditional as well?
Mixed Economy
200
Give an example of a scarcity in your life and explain why it is scarce.
water, time, etc.
200
Give an example of an opportunity cost you have when you come to school. Please explain why it is an opportunity cost to you.
Sleep, video-games, television, etc. It is what you are giving up as the next best option after choosing to come to school.
200
Why do economists use PPFs?
A way for economists to show different choices of resources is to draw a PPC, or production possibilities curve. PPCs are a helpful way economists can simplify information.
200
Using the simulation survival game please explain the 3 basic economic questions.
What to produce: fish for food, poncho for clothing, hut for shelter How to produce: how would be the best, most efficient use of time to produce those three items so everyone would attain them in a timely manner. For whom to produce: everyone needed each of those items in order to live so everyone would be the consumer.
200
What is the type of economic system where the government does not intervene? Individuals own the factors of production and they decide the answers of the basic economic questions. The market is the freely chosen activities between buyers and sellers of goods and services.
Market or Capitalist Economic System
300
What makes water a scarcity?
Too many people, not enough supply of water for everyone in the world. In some parts of the world "clean" water is also a scarcity.
300
Given this scenario what is the opportunity cost? Scenario- Jimmy really wants to go to the movies with his best pal Sal, but he has a HUGE test the next day. Jimmy decides he has studied enough and chooses to go to the movie. The next day he fails his test. What is the opportunity cost in this situation?
Jimmy gave up studying the night before his big test in order to see the new movie. The opportunity cost in this situation is studying the night before his test.
300
On a PPF curve why is a "bowed" out curve more realistic to draw than a straight line?
A “bowed” shape curve is better and more realistic, i.e. (The bowed curve illustrates increasing costs associated with increasing units of each good, indicating that resources are not perfectly suited to all uses.)
300
How would you define economics?
A variation of this will be deemed acceptable: A social science that studies how individuals, governments, firms and nations make choices on allocating scarce resources to satisfy their unlimited wants.
300
What is the economic system in which the individual has little influence over how the economic questions are answered in a pure command system. The government controls the factors of production and makes all decisions.
Command System
400
List the factors of production.
land, labor, capitol, and entrepreneurship
400
Are all opportunity costs ALWAYS the same for everyone? Why or why not. Please explain.
No, they are not always the same. This is so because not everyone’s choices will always be the same because people’s values are diverse. Individuals will place different value on the relative benefits of a set of alternatives and will thus make different choices.
400
Points inside of a PPC are considered this ___________. Points outside of a PPC are considered this __________.
At all points on a PPF curve; resources are fully employed, given the available technology. Points inside the curve represent waste or inefficient use of resources. Points outside the curve are not possible because the curve represents maximum production, the frontier.
400
How would you describe the difference between Microeconomics and Macroeconomics?
Economics can generally be broken down into: macroeconomics, which concentrates on the behavior of the aggregate economy; and microeconomics, which focuses on individual consumers.
400
What effects a traditional economy?
Things are done as they were in the past. A traditional economy is effected by traditions, customs, and beliefs (religious).
500
Give examples of each of the four factors of production.
Land: Any natural resource coal, oil, wood, water, petrol, or the actual ground or rivers. Labor: The laborers (workers) in a business. Capital: The money involved.It can also be any man-made resource e.g machinery, equipment, vehicles. Enterprise: Is the factor of production which draws all the others together in hope of making a profit.
500
Please come to the board and draw a production possibilities curve given the scenario below. Scenario: Ben has 15 hours to do two things currently: finish a big report, and play video games. Please draw the opportunity cost he will be giving up by choosing to finish his report for 10 hours.
*Teacher will check if correct
500
*The teacher will draw a PPF curve on the board. Please describe what the opportunity cost of 5 units of corn is.
By receiving 5 units of corn Johnny is giving up 1 unit of hay. The opportunity cost would then be 1 unit of hay.
500
What is Ms. Adams' favorite subject in Social Studies? Please be specific.
Economics! :) Specifically MACROECONOMICS!!! :)
500
What economic system do you think works the best? Please explain why in as much detail as possible.
*Answer varies as long as their is evidence to back up claims
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