Resources
Mr. Wilson
What is Labor?
The second best choice you gave up when you chose the first best choice.
What is Opportunity Cost
When one country is better at making a product than another.
What is Absolute Advantage.
Consumers want to buy as much as they can for as little money as possible.
What is the Law of Demand
As cattle gets cheaper, the supply of steak...
What is Increases (shift right)...Price of Resources
Dump Truck
What is Capital?
When an economy operates inside the PPC/PPF.
What is Inefficiency or Underemployment.
The ability of an economy to produce a good at a lower opportunity cost than another country.
What is Comparative Advantage.
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
Lebron James releases a new shoe. After winning the NBA Finals the demand for the shoe...
What is Increases (Shifts Right)...Tastes and Preferences
Phil Knight (Creator of Nike)
What is Entrepreneurship?
Any point outside the PPC/PPF
What is Unattainable.
United States produces 500 bushels of corn; Mexico: produces 400 bushels of corn. Absolute Advantage.
What is the United States?
As price goes up, so does quantity.
What is Supply?
Supply shifts left and Demand shifts right simultaneously. Price...
What is Price Increases...Double Shift
Factory Building
What is Capital?
This means that the more you have of something, the less utility [satisfaction] you get from each new unit.
What is Diminishing Marginal Utility
Quantity Supplied is at 300 units. Quantity Demanded is at 200 Units.
What is Surplus.
Demand Shifts Left and Supply Shifts Left. The price...
What is indeterminate. Price remains the same.
The Moon
What is Land?
As 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
"Capital should flow freely towards those countries where it could be most profitably employed”
Who is David Ricardo?
The point where quantity supplied and quantity demanded meet.
What is Equilibrium Quantity
An increase in the demand for bread following a very harsh winter changes the price of bread...
What is the price of bread increases...Price and Availability Of Resources.