Vocabulary
An economy that does not engage in trade or financial transactions with other countries.
What is a "closed economy"
Adam Smith is best known for introducing the concept of:
What is the "invisible hand"
Who owns all economic resources in an economy?
What is human capital?
What is "skilled labor"
What is marginal cost?
What is "the cost to produce onen additional unit"
The ability of a country to produce a good at a lower opportunity cost than others.
What is "comparative advantage"
When did the Agricultural Revolution begin approximately?
What is "10,000 years ago"
List the economic resources in the circular flow model.
What is "land, labor, capital, and entrepreneurial ability"
What is physical capital?
What is "machines"
What is marginal benefit?
The process of increasing interconnectedness among economics, cultures, and populations.
What is "globalization"
Where did the Industrial Revolution begin?
What is "The Netherlands"
Describe circular flow.
The interaction between businesses and households in two key markets.
What two factors impact human capital?
What is "education and immigration"
If a factory produces 100 NeeDohs for $500-and producing 101 NeeDohs costs $507 in total-what is the marginal cost?
What is "$7"
Shift from rural agricultural jobs to urban factory work.
What important invention did steel create?
What is "Trains/Railroads"
What do households supply and receive in the circular flow model?
What is "economic resources and income"
What two concepts contribute to the flow of economics?
Firms & Households
A ticket to the school dance costs $15. You estimate the benefit of attending as $25. Should you attend?
What is "yes because marginal benefit is more than marginal cost"
Led to settled farming, surplus food production, and population growth, and the development of social hierarchies and markets
What is "agricultural revolution"
Define the Invisible Hand
What is "how indivudal self-interest in free markets leads to economic benefits for society"
What do businesses buy and sell in the circular flow model?
What is "economic resources and goods/servies"
If a football player gets a contract for $23 million per year, but must put their career on pause to get a USC education for $400k, what’s the opportunity cost?
$92.4 million
Draw a graph showing the possible combinations given a budget of $100.
Sushi costs $8, Tacos cost $4
What is "negative slope"