Economic Concepts
This is the study of how people make choices to satisfy their unlimited wants and needs.
What is Economics.
This factor of production includes individuals who take risks to introduce new goods and services in search of profit.
Who are entrepreneurs.
Look on the board... which point is efficient?
What is the point labeled 'B'.
This 'economic goal of society' requests that a given economic system must grow with its population in order to provide jobs and meet the ‘Standard of Living'.
What is Growth.
The pay a roman soldier would receive and where we English-speaker get the word salary.
What is salarium.
This is the idea that there are not enough resources to produce all the things we would like to have.
What is scarcity.
This factor of production includes all workers/physical labor and their apparent skills/knowledge.
What is labor.
This is the name of a point located under the efficiency curve on a PPC Graph.
What is an inefficient/underutilization point.
This 'economic goal of society' requests that a given economic system meets the needs and wants of consumers as accurately and directly as possible.
What is Efficiency.
This is the trade system commonly used in the traditional economic system.
What is the barter system.
This is what's known as giving up one good or service in exchange for another.
What is a trade off.
This factor of production includes all natural/raw materials on earth.
What is Land.
This is a point indicating an unattainable economic output for a company's PPC Graph AND this is its general location on said graph.
What is an Impossible Point, located outside of the curve on a PPC Graph.
This economic system is also known as a 'centrally planned economy'.
What is a Command Economic System.
This is the oldest form of money, first seen in the Middle East.
What is a Shekel.
These are items that satisfy human wants and provide utility AND These are task that is performed for a buyer without any goods being exchanged
What are Goods and Services
This factor of production includes all man-made products used to produce goods/services.
What is capital.
This is one automatic assumption when one creates a PPC Graph
What is either Two Goods, Fixed Resources, Fixed Technology, or Technically Efficient.
This economic system answers the three basic economic questions using businesses (producers) and private individuals (consumers).
What is the Free Market Economic System
The cost (or benefit) of adding one additional unit in a given tradeoff is known as ________ Cost (or ______ Benefit- both blanks are the same word)
What is Marginal.
This is the most desirable alternative a person gives up when making a decision.
What is Opportunity Cost.
List one example of each of the factors of production.
If you're seeing this, you guessed it right!
This one reason a PPC Graph may experience growth AND one reason a PPC Graph may experience decline
What are:
Growth: Accumulation of capital/ Technological advances/ Increase in population – immigrants, birth rates increase/ Available land or improvements to land
Decline: Decrease in population –disease, catastrophe, war, birth rates decline/ Loss of land – war or natural disaster/ Decrease in production due to aging population, more uneducated population, less healthy population
This economic system considers itself successful if it meets basic requirement for livelihood (food, water, shelter, companionship, etc.)
What is the Traditional Economic System.
The word Economics comes from this Greek word meaning Houshold management.
Oikonomia