Market Failures
This type of good, like a lighthouse, is available to everyone once it’s provided, and it’s difficult to exclude people from using it.
Public goods
This allocation strategy gives resources to the person willing and able to pay the most.
Price
You decide to watch Netflix instead of studying. The opportunity cost of this choice is what?
a better grade on your test! (or something related to not studying)
A factory pollutes a river while producing goods. This side effect that harms third parties is called what?
Negative externality
This economic system is great at meeting the goal of freedom
Market Economy
In this strategy, resources are distributed based on the majority’s choice, often through voting.
Majority rule
An additional cost of doing something
marginal cost
What is Capital?
What are tools used in labor whether physical or ideal.
What type of laws were put in place to prevent one company from having too much power?
Antitrust laws
A king decides who will receive land grants in his kingdom. This is an example of which allocation strategy?
Authority
A rational decision is made when the marginal __________ is greater than or equal to the marginal __________.
Benefit and Cost
This type of externality exists when a homeowner plants flowers, and the entire neighborhood benefits from the increased property values.
Positive externality
What type of economy has the most unemployment?
Market economy
A city has one available donor heart for transplant. Doctors choose the recipient based on factors like age, health, and compatibility. Which allocation strategy is this?
Personal Characteristics
Which law explains why you won't eat an 8th slice of pizza at stevie B's?
law of diminishing marginal utility
Government tries to prevent this so that prices stay low and quality of goods are high
Monopoly
This system often struggles to achieve efficiency but excels in providing stability and guaranteed employment
Command
Federal stimulus checks distributed equally to most citizens during COVID-19. Which allocation Strategy?
Sharing
You already ate two slices of pizza and are deciding whether to eat a third. The decision should be based on what principle of economics?
Marginal Analysis
A software company develops a new app using computer servers, skilled programmers, and venture capital funding. Identify the factor of production that is most directly represented by each of the following:
the servers,
the programmers’
and the venture capitalist who funded the project.
Servers -> Capital
Programmers -> Labor
Venture Capitalist -> Entrepreneurship