Scarcity
What is scarcity?
It means that the demand for a good or service is greater than the availability of the good or service.
What is opportunity cost?
The loss of benefits from choosing one way rather than choosing the alternative choice
What is a nation’s production possibility graph?
It shows as time progresses the United States resources are decreasing
What is budget?
Spending habits have a certain constraint
What is oil?
natural resource that is used in gasoline
What example discussed in the presentation today poses a significant risk to the global economy.
Natural gas scarcity poses a significant risk to the global economy.
What is limited resources?
It affects opportunity cost the most
What does the NPP graph demonstrate?
Scarcity and Choice
What is behavioral economics?
Emotions and bias affect the decision making process when buying a new car.
What is supply and demand?
The amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price.
How does having limited resources make it hard for a country to choose between growing the economy and protecting the environment?
Scarcity forces a country to decide whether to focus on immediate economic growth or on saving resources for future use.
What is the potential future income from a college degree?
If a student chooses to work full-time instead of attending college, this represents the opportunity cost of the decision.
What is productive efficiency?
It is producing goods and services with the optimal combination of inputs to produce maximum output for the minimum cost.
What is cost-benefit analysis?
When you list all the possible benefits of a new decision
What is gas prices?
Fluctuates due to demand, geopolitics, and the global market.
How does scarcity make it difficult for a government to provide services like healthcare and education during tough economic times?
Limited resources mean the government has less money to spend on important services when the economy is struggling.
What is a trade off?
The exchange between two or more alternatives, where choosing one involves forgoing the benefits of the others.
How does imports and exports impact the US production possibilities?
They provide additional sources of supply for U.S. consumers and additional customers for U.S. producers.
What is marginal analysis?
Comparing additional benefits of a choice to the additional cost when making decisions on a margin.
What is a ppf graph?
curve on a graph that illustrates the possible quantities that can be produced of two products if both depend upon the same finite resource for their manufacture.
How does not having enough resources affect how money and wealth are shared in a country?
Scarcity can lead to some people having more money and wealth than others, making the gap between rich and poor larger.
What is a production possibilities curve?
A graph that shows the relationship between the production of two goods, where the curve represents all combinations of production levels that can be achieved with the available resources and technology.
What causes consumers to make a choice regarding NPP when it comes to purchasing gas?
Increased usage and future scarcity makes consumers consider other choices. (ex: with gas, electric vs gas cars)
What is risk aversion?
People do not want make risky investments or decisions, resulting in low-risk, steady finances.
What is product efficiency?
producing max outcome with minimum cost inputs