Basic Terms
What is the study of how people satisfy their needs and wants by making choices.
Economics
What is the concept that limited amounts of goods and services are available to meet unlimited wants?
Scarcity
Which factor of production is all natural resources?
Land
What is opportunity cost of a decision?
The cost of the next best choice.
What is the name of a graph showing two possible combinations of goods and services when all resources are used efficiently?
Production possibilities curve
You have to work this evening. You start thinking about what you wish you were doing instead which would definitely be working out, but you also like to read and watch videos on your phone. What is your opportunity cost of working.
working out
Look at Topic 1 review on Production Possibilities curve.
What is the opportunity cost of increasing pumpkin production from 60 to 70?
20 watermelons
What is a physical product that is useful to others?
A good
What is the extra benefit of doing one more of something?
Marginal benefit
If someone works at the front desk at the LAB, he/she is providing which factor of production?
labor
What is the extra cost of doing one more of something?
Marginal cost
What is a possible combinations of both items of goods and services
production possibilities frontier
Which item is a service?
a bottle of Pepsi
an i phone
getting a haircut
a backpack
getting a haircut
Look at Topic 1 review on Production Possibilities curve.
What is the opportunity cost of increasing watermelon production from 20 to 40?
10 pumpkins
Because shelter is necessary for survival, it is considered what?
A need
What trade off do governments have to do, nicknamed guns vs. butter?
Military vs. domestic needs
Which factor of production is human made resources used to produce goods?
Capital
What is giving up one benefit to gain another?
a trade off
What does a point above the curve show?
you don’t have enough resources to produce that yet
What is the central bank of the United States?
The Federal Reserve
Look at Topic 1 review on Production Possibilities curve.
What is the opportunity cost of increasing watermelon production from 80 to 100?
25 pumpkins
What is work or labor performed for someone?
A service
Look at Topic 1 review on Production Possibilities curve.
If you make 70 pumpkins, how many watermelons could you make?
20 watermelons
What is it called when consumers want more of an item than producers are willing or able to make at a particular price?
shortage
What is deciding is deciding how much more or how much less to do of something?
Thinking at the margin
What does a point on a curve show?
an efficient use of resources.
How would the Federal Reserve likely respond when inflation is too high?
It would increase interest rates
Look at Topic 1 review on Production Possibilities curve.
Could the producer make 30 watermelons and 40 pumpkins at point G?
The producer can make that combination as it is inside the production possibilities curve and it would be underutilization of resources.
Because entertainment is not necessary for survival, it is considered what?
A want
What is weighing the pros and cons of a situation to make the best choice
cost-benefit analysis
Which factors of production is risk-taking to earn profits?
Entrepreneurship
The amount of something a person wants to do is when what happens?
Marginal cost equals the marginal benefit
What does a point inside the curve show?
underutilization of resources and producing less goods and services than possible
What happens when the government spends more money in one year than it collects in taxes?
Deficit
Look at Topic 1 review on Production Possibilities curve.
Could the producer make 20 watermelons and 70 pumpkins at point B?
The producer can make that combination as it is on the production possibilities curve and it would be efficient.
What must occur for the production possibilities curve to shift upward?
Economic growth
Look at Topic 1 review on Production Possibilities curve.
If you make 80 watermelons, how many pumpkins could you make?
25 pumpkins
What is any training or education that people have?
human capital
What concept is shown by moving from one point on the production possibilities frontier to another?
Opportunity cost
What is it called when opportunity costs increase when switching production from one item to another?
Law of increasing costs
Major stock indexes in the United States
Look at Topic 1 review on Production Possibilities curve.
Could the producer make 70 watermelons and 50 pumpkins at point H?
The producer cannot make that combination as it is above the production possibilities curve and it would require economic growth.