PPC
Identify another term used for the production possibilities curve.
Production possibilities frontier
Identify what is being flowed circularly in the economy, along with goods and services.
Income
True or false- Classical economists hold different perspectives related to economic theory.
True
True or false- The two formative assessments this week are graded with rubrics.
False
True or false- Potential output refers to movement along the curve.
False- this would be a shift of the curve.
List three examples of injections.
Spending, investments, exports
State Say's Law.
Say's Law is an economic principle that states that the production of goods (supply) creates its own demand (output is demand).
How many papers do HL students write? SL?
HL writes 3. SL writes 2.
Explain why the concepts of choice, scarcity, and efficiency should always be applied to this topic.
Input resources (land, labor, capital, or enterprise) are scarce, meaning there is a finite amount. Therefore, economies must make choices on which are used to produce goods and services. If resources are allocated to make good x, the opportunity cost (next best alternative) is another unit of output of good y. This shows the difficult and deliberate choices made by economic agents for the three economic questions, in response to the economic problem of scarcity. If resources are used completely, showing a point on the frontier, we say the economy is operating at productive efficiency, as there is no waste. But, unemployed resources can result in inefficiencies as well.
100 pts for each concept
Savings, taxes, imports
Describe the invisible hand metaphor.
"The invisible hand is a metaphor for the unseen forces that move the free market economy. Through individual self-interest and freedom of production and consumption, the best interests of society, as a whole, are fulfilled. The constant interplay of individual pressures on market supply and demand causes the natural movement of prices and the flow of trade" (Majaski).
How many commentaries are written by students for the portfolio IA?
3
Draw a PPC, labeling appropriately, and label a point of efficiency, inefficiency, and unattainability.
Answers may vary.
Distinguish between the resource and product markets.
In the product market of the two-sector households and firms, consumers are exchanging expenditure which is revenue for businesses, who are exchanging goods and services.
In the resource market, households provide inputs (factors) for costs (wages or income).
Describe Marx' labor theory of value.
"Marx' labor theory of value (1867) made the basic claim that the value of a good or service can be objectively measured by the average number of hours required to produce that product. For example, if it takes twice as long to produce a pair of shoes compared to a shirt, then shoes are twice the value of shirts. Hence, the price of shoes is twice the price of shirts" (Hoang et al.).
How many parts are in a paper 1? How many marks is each?
part a- 10 marks
part b- 15 marks
State the five assumptions made in regards to this theory, according to Kognity.
State how many sectors an open economy has and what they are.
5- households, firms, financial, government, foreign
Describe David Ricardo's comparative advantage theory.
"Ricardo's widely acclaimed comparative advantage theory suggests that nations can gain an international trade advantage when they focus on producing goods that produce the lowest opportunity costs as compared to other nations" ("Who Is David Ricardo").
Students could also focus on specialization.
Outline the recommended writing structure for paper 1.
Define
Explanation
Examples
Evaluation (if command term is used)
Diagram