Fundamentals of Econ
What is the study of how people make choices with limited resources called?
What is Economics?
What factor of production includes natural resources like land, water, and minerals?
What is Land?
What does a Production Possibilities Curve show?
What is the maximum combinations of two goods an economy can produce with limited resources?
This famous 1776 book by Adam Smith laid the foundation for free-market economics.
What is The Wealth of Nations?
You have 2 hours after school. You can earn $10 per hour working or watch a movie. If you choose the movie, what is your opportunity cost?
What is $20?
What term describes resources that are limited but wants are unlimited?
What is Scarcity?
What factor of production includes workers and their skills?
What is Labor?
A point inside the PPC represents what type of production?
What is inefficient production (or unemployment/unused resources)?
Adam Smith argued that economies grow stronger when workers specialize in specific tasks, a concept known as this.
What is the Division of Labor?
A factory can produce either 50 cars or 100 motorcycles in a week. What is the opportunity cost of producing 1 car?
What is 2 motorcycles?
What is the next best alternative you give up when making a decision?
What is Opportunity Cost?
What factor of production includes tools, machines, and buildings?
What is Capital?
What does a point on the PPC represent?
What is efficient production?
Adam Smith is often called the “Father of” this field of study.
What is Modern Economics?
An economy can produce either 200 computers or 400 tablets. If it produces 1 more computer, how many tablets must it give up?
What is 2 tablets?
The "sweet spot" on a graph is where the supply and demand lines cross. At this point, the amount of goods sellers want to sell exactly matches the amount buyers want to buy. Because supply and demand are balanced, the price stays stable
What is equilibrium price
What factor of production refers to the risk-taker who starts a business?
What is Entrepreneurship?
Moving from one point to another along the PPC shows what economic concept?
What is Opportunity Cost?
Smith believed individuals pursuing their own self-interest would unintentionally benefit society through this idea.
What is the Invisible Hand?
You quit a job that paid $500 per week to attend college. Tuition costs $300 per week. What is your total weekly opportunity cost of attending college?
What is $800 per week?
When quantity demanded exceeds quantity supplied, this market condition exists.
What is a shortage?
What factor of production is being increased when a company trains its workers?
What is Human Capital?
What happens to the PPC when there is an increase in resources, technology, or education?
What is the PPC shifts outward (economic growth)?
Smith believed the government should have a limited role in the economy, a philosophy known by this French term meaning “let it be.”
What is Laissez-faire?
A farm can grow either 10 acres of corn or 5 acres of wheat. What is the opportunity cost of 1 acre of wheat?
What is 2 acres of corn?