Terms
The Circular Flow
About Production Possibilities
Calculating Opportunity Costs
Opportunity Cost and Specialization
100
The meaning of the word marginal
What is extra?
100
The firms in the resource market are this
What are the buyers
100
Points along a PPF are called this
What is technically efficient
100
In the table below, the total opportunity cost of 2 tractors is
Tractors Motorcycles
0 10
1 9
2 6
3 0
What is 4 motorcycles
100
Michael can produce 4 softballs and 12 golf balls in an hour. Sam can produce 9 softballs and 18 golf balls in an hour. Sam has an absolute advantage in
What is both golf balls and softballs
200
The term for studies of the choices made by individual units like a single firm or a single buyer
What is microeconomics
200
The term that refers to the money that firms receive from the goods and service market
what is revenue
200
The single point which is most desired by society is called this
what is allocatively efficient
200
In the table below, going from 1 to 2 tractors has a marginal opportunity cost of
Tractors Motorcycles
0 10
1 9
2 6
3 0
What is 3 motorcycles
200
Michael can produce 4 softballs and 12 golf balls in an hour. Sam can produce 9 softballs and 18 golf balls in an hour. The marginal opportunity cost of a softball for Sam is
What is 2 golf balls per softball
300
Making statements that describe what is, not what should be
What is positive statements
300
In this diagram, it is the letter that shows the pizza that was received by a household
What is B
300
An increase in unemployment does this to a PPF
What is nothing - it does not shift
300
In the table below, the marginal opportunity cost of the 350th orange is
Oranges Grapefruit
400 0
350 50
250 200
0 400
what is 1.5 grapefruit
300
Michael can produce 4 softballs and 12 golf balls in an hour. Sam can produce 9 softballs and 18 golf balls in an hour. The marginal opportunity cost of a softball for Michael is
What is 3 golf balls per softball
400
Tariffs and quotas that restrict trade are a form of this
What are protectionism
400
In this diagram, it is the letter that shows a wage that was received by the pizza delivery person
What is D
400
The reason that this PPF is curved
What is it has increasing marginal opportunity cost (or resource productivity differences)
400
In the table below, the marginal opportunity cost of the 400th orange is
Oranges Grapefruit
400 0
350 50
250 200
0 400
what is 1 grapefruit
400
Michael can produce 4 softballs and 12 golf balls in an hour. Sam can produce 9 softballs and 18 golf balls in an hour. To gain from trade, Michael should
what is produce golf balls (his comparative advantage)
500
Restricting trade so that new firms can get started is called this argument for using protectionism
what is the infant industry argument
500
In this diagram, it is letter showing the money that the firm received when it sold the pizza.
What is A
500
The two reasons that a PPF would do this are
what is having fewer resources or lower productivity
500
A graph shows Tvs on the vertical axis and computers on the horizontal axis. The formula to calculate the marginal opportunity cost of a computer is
What is TV's given up/Computers gained
500
In this example, the person with both the absolute and comparative advantage in oranges is
Sue Amy
Oranges Apples Oranges Apples
10 0 6 0
0 15 0 36
Who is Sue