The basic problem facing all economies
Scarcity
A market where prices are set only by supply and demand
Free market
Would the stress from going to school be an opportunity cost of attending? (Y/N)
No
An increase in available resources will cause a PPC to shift ________ (outward/inward)
Outward
What is one "thing" that is flowing in the circular flow model?
Resources/products/money
Stalinist Russia was this type of economy
Command
The country decides to increase production of Good x from 20 units to 40 units. What is the opportunity cost of this decision?
3 units of Good y
False
An activity or or other intangible benefit that is paid for by a customer
Service
Adam Smith described free markets as being controlled by a(n) _________ hand
Invisible
If you could make $20/hr mowing lawns, what is the opportunity cost of spending 2 hours studying?
$40
Being able to produce something at lower opportunity cost than other producers
Comparative advantage
The goal of companies is to maximize their _____
Profit
A type of economy where the government owns all property
Command
This is a cost that you have paid and cannot get back
Sunk cost
Being able to produce something using less resources than other producers
Absolute advantage
The four factors of production
Land, Labor, Capital, Entrepreneurship
Lithuania is this type of economic system (Hint: it's the same as most countries in the world)
Mixed
Equation to calculate per-unit opportunity cost
(Total cost)/(#of units)
The only way to consume more goods in your country than the country can produce
Trade