Vocab
Scarcity and Factors of Production
Opportunity Cost
Production Possibilities Curve
Bonus
100
This occurs when there are limited quantities of resources to meet unlimited needs or desires
scarcity
100
these are manufactured goods needed to produce other goods and services
capital
capital goods
100
You bought two CDs with your last $30. What is the opportunity cost?
(A) the cost to make the CDs and the price you paid
(B) the $30 that you gave to the clerk for the CDs
(C) the movie with your friends that you now can't afford
(D) the joy of knowing you are the first to have these CDs
(C) the movie with your friends that you now can't afford
100
Production possibilities curves are important tools for
- demonstrating which products will sell better than others.
- comparing costs and profits of producing goods and services.
- determining the underutilization of an economy’s resources.
- showing ways to use an economy’s productive resources.
- showing ways to use an economy’s productive resources.
100
This helps us to become better decision makers.
Economics
200
the most desirable alternative given up as a result of a decision is
opportunity cost
200
The money used to buy the tools and equipment needed for production is known as
financial capital
capital
200
A factory bottles apple juice and cranberry juice. If it wants to bottle more apple juice, what is the trade-off?
(A) a smaller factory
(B) a bigger factory
(C) less cranberry juice
(D) more cranberry juice
(D) more cranberry juice
200
An economy at its production possibilities frontier is operating
a. with slow economic growth.
b. without division of labor.
c. at full potential.
d. as a free enterprise economy.
c. at full potential.
200
What is the physical capital in this photo?
the tractor
300
This describes the concept that everything we do has a cost
trade-offs
300
Why are goods and services scarce?
resources are limited
300
In a cost/benefit analysis, what would be the benefit of taking the Dallas North Tollway instead of Routes 75 and 380?
less travel time.
300
These two things can make a government's economy more efficient
technology and education
300
What scarcity-related choice must the owner of this calendar make?
how to use limited time
400
the factor of production that is efforts that earn wages
labor
400
land
400
Which is an example of thinking at the margin?
(A) figuring out what you will give up and gain by hiring a new worker
(B) thinking about whether or not to go on a vacation to a warm beach
(C) drawing plans to build an extra room on an old home
(D) deciding whether to have a dog or a cat as a pet
(C) drawing plans to build an extra room on an old home
...but I'll also accept A if you can defend it
400
In the time period covered by the production possibilities curve, the company decides to make 8 gallons of blue paint. How many gallons of red paint can the company make with the available time and resources?
1
400
This is the extra cost of making one additional or less unit
marginal cost
500
Not using all of the available resources is
underutilization
500
Which of the following is an example of scarcity rather than shortage?
- Extremely hot temperatures lead to increased air-conditioner use and power outages.
- There aren’t enough software engineers to fill all the job openings in Silicon Valley.
- Newly discovered Van Gogh paintings are put up for auction and sell for millions.
- During the holiday season, an outfitter runs out of skis.
- Newly discovered Van Gogh paintings are put up for auction and sell for millions.
500
If the libraries in question are public, what trade-off is illustrated by the photograph above?
lower taxes versus more government services
500
The shift from line a (red) to line c (purple) means that
the economy has grown
500
This occurs when producers will not or cannot offer goods or services at current prices
shortages