Production Possibility
Comparative Advantage
Supply and Demand
S/D Shifters and Price/Quantity Change
The Basics
100
The second best choice you gave up when you chose the first best choice.
What is Opportunity Cost
100
When one country is better at making a product than another.
What is Absolute Advantage.
100
Consumers want to buy as much as they can for as little money as possible.
What is the Law of Demand?
100
Cattle gets cheaper. The supply of steak...
What is Increases (shift right)...
100
The study of how society manages its scarce resources.
What is economics?
200
When an economy operates inside the PPC/PPF.
What is Inefficiency or Underemployment?
200
The ability of an economy to produce a good at a lower opportunity cost than another country.
What is Comparative Advantage.
200
This law states that producers want to produce as much as they can and sell it for as much money as they can.
What is the Law of Supply?
200
Lebron James releases a new shoe. After winning the NBA Finals the demand for the shoe...
What is Increases (Shifts Right)
200
Society has limited resources and can't produce all goods and services that people want.
What is scarcity?
300
Any point outside the PPC/PPF.
What is Unattainable.
300
Which country has an absolute advantage in sugar?
What is Mexico?
300
As price goes up, so does quantity.
What is Supply?
300
Supply shifts left and Demand shifts right.
What is Price Increases
300
When 2 things can't be happening at the same time so you have to pick one or the other
What is trade-off?
400
This means that the more you have of something, the less utility [satisfaction] you get from each new unit.
What is Diminishing Marginal Utility
400
What is Cuba's opportunity cost for producing one car?
4 sugar
400
Tastes and preferences, number of consumers, price of related goods (substitutes and complements), income, and future expectations describe this idea.
What are the five shifters of demand?
400
Demand Shifts Left and Supply Shifts Left
What is Price remains the same.
400
What you give up to have a different item. For example, spent time studying instead of watching TV.
What is opportunity cost?
500
This law states that as the 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
500
Which country has a comparative advantage in cars and which has a comparative advantage in sugar?
Mexico has it for cars. Cuba has it for sugar.
500
The point where quantity supplied and quantity demanded meet.
What is Equilibrium Quantity
500
An increase in the demand for bread following a very harsh winter changes the price of bread...
What is... the price of bread increases.
500
Land, labor, capital, and sometimes entrepreneurship
What are the factors of production?