What is Economics
___________ is the fundamental problem in economics.
Scarcity
What do we call the alternative given up when we choose one course of action over another?
Trade-off
What is the acronym used for the 4 Factors of Production
CELL
What is the purpose of a PPC?
To show all possible levels of production given current resources
Define absolute Advantage
Being able to produce more of a good/product
____________ are things that are necessary for survival.
Needs
Define opportunity cost.
The cost/value of the next best alternative given up.
Name an example of Labor
Various examples
Producing at a point ON the curve is considered...
Efficient
Comparative Advantage is about producing a lower _________________.
Opportunity Cost
Name the 3 basic questions of Economics
What, How, and For Whom to produce
You decided to go out with friends instead of studying for your test. What was your trade off?
Studying
Name an example of Land
Various examples
True or False, if you are producing at a point that lies on either the x or y axis, you are putting all of your resources to only one good/product.
True
China: 10 Capital, 100 Consumer
Japan: 20 Capital, 50 Consumer
Who has the Absolute Advantage in the production of Capital goods?
Japan
Because society has unlimited needs and wants, but limited resources, we must make __________.
Choices
You decided to go out with friends instead of studying for your test. What was your opportunity cost?
The extra knowledge you gain from studying/a better score on your test
Name an example of something in this room that could be considered Capital
Desk, chairs, laptops, etc.
Name something that might cause a PPC to shift down
Various answers
China: 10 Capital, 100 Consumer
Japan: 20 Capital, 50 Consumer
What is the opportunity cost of producing 1 Capital good in China?
10 Consumer goods
Which term is most closely related to Scarcity?
1. Few
2. Limited
3. Free
Limited
You decide to cheat on your Economics test. What is your opportunity cost?
-Your honesty/integrity
-Your reputation
Define Entrepreneurship
A risk-taker who combines FOPs in order to make a profit
What would be a potential change to Labor that would cause a PPC to shift out?
China: 10 Capital, 100 Consumer
Japan: 20 Capital, 60 Consumer
Who has the Comparative Advantage in the production of Capital goods?
Japan