Scarcity
What is economics?
Economics: the study of how people seek to satisfy their needs and wants by making choices.
What are the three factors of production?
Land, labor, and capital
What is one trade-off of choosing to sleep in one hour extra, instead of waking up one hour earlier to study for an economics test?
Trade-off: the act of giving up one benefit in order to gain another, greater benefit.
In this case, you may be more well-rested the rest of the day, but score a lower grade on your test.
Come up to the board to draw a production possibilities curve for hot cheetos and lamborghinis.
Production possibilities curve is a graph that shows alternative ways to use an economy's productive resources. (The axes will show categories or specific goods and services.)
What are two ways a society can improve efficiency and help the economy grow?
1. Society can improve technology (the process used to create goods and services).
2. Society can also invest in education and training so that people can develop and use new technologies.
What is the difference between a need and a want?
Need: something that is essential for survival (food, medical care, etc.)
Want: something that we desire, but is not necessary for survival (video games, haircuts, etc.)
Name three examples of "land" resources.
Land: refers to all natural resources used to produce goods and services (oil, iron, coal, water, forests, etc.)
Explain the phrase "guns or butter."
"Guns or butter" describes one of the common choices facing government: the choice between spending money on military or domestic needs.
If a production possibilities curve "shifts to the right," what is happening to the economy?
The economy is growing.
What is the senior class color?
Green
Name two examples of goods and two examples of services.
Goods: physical objects that someone produces
Services: actions or activities that one person performs for another
If used effectively, how can capital be used to help people and companies?
If used effectively, capital can save people and companies time and money.
Define what a decision-making grid measures.
Opportunity cost: the most desirable alternative somebody gives up as the result of a decision.
What is the production possibilities frontier and what does each point on the frontier show?
The production possibilities frontier shows the combinations of the production of two two goods and services and each point shows a trade-off of making more of one good than the other.
What program is Mr. Duong the advisor of?
Class of 2024
What are two ways a society can improve efficiency and help the economy grow?
1. Society can improve technology (the process used to create goods and services).
2. Society can also invest in education and training so that people can develop and use new technologies.
What do some economists say is the fourth factor of production?
Entrepreneur: people who decide how to combine resources to create new goods and services
What do you do when you decide how much more or less to do?
You think at the margin.
When the output of goods and services are maximized, resources are being used efficiently. But what is it called when resources are not used to their maximum capability?
Underutilization: The use of fewer resources than the economy is capable of using; any point inside the production possibilities curve.
What are two events that are happening this Friday, September 1?
Club Rush, so stop by the class of 2024 booth and make the best out of your senior year :)
Varsity football game at Montebello High School.
What is the difference between a scarcity and shortage?
Scarcity: limited amounts of goods and services that are available to meet unlimited wants
Shortage: when consumers want more of a good or service than producers are willing to make available at a particular price
Scarcity will always exist because we have limited resources, while shortages can be solved by producing more goods and services.
What is the difference between physical capital and human capital?
Physical capital: human-made objects used to create other goods and services
Human capital: the knowledge and skills a worker gains through education and experience
How do you perform a cost/benefit analysis?
Decision makers would have to compare the opportunity costs and the benefits (what they will sacrifice and what they will gain)
Marginal cost: the extra cost of adding one unit.
Marginal benefit: the extra benefit of adding the same unit
What is the law of increasing costs?
The law of increasing costs states that as production shifts from making one item to another, more and more resources are necessary to increase production of the second item. Therefore opportunity cost increases.
Who is your favorite teacher so far this year?
Mr. Duong