PPC
Name of any point on the graph?
What is efficient?
Relationship between price and quantity supply
What is a positive relationship?
What relationship does price and quantity demand have?
What is inverse relationship?
What is Scarcity?
What is unlimited wants LIMITED resources
What is other goes over
What is the shape of the PPC curve?
What is Concave bowed out?
Better technology is which shifter?
What is Tech?
These will change Demand except?
-Price
-Taste
-Black Friday
-Substitutes
What is Price?
Crucial problem in Economics
What is allocating scarce productive resources to satisfy wants.
Formula for an input question
What is other goes under?
An increase in what increases economic growth?
What is Capital Goods?
6
Substitutes and Complementary Goods are?
What is a relatable good?
The principle of opportunity cost evolves from the concept of
What is Scarcity?
The Principle of Comparative Advantage implies that:
A. two countries can benefit from trade only if one country is better at producing one good compared to another in absolute terms.
B. two countries can benefit from specialization and trade even if one country is better at producing one good compared to another in absolute terms.
C. all countries should specialize in whatever they have a higher opportunity cost to producing.
D. all countries are better off when each produces all goods for themselves and they do not trade with each other.
B. two countries can benefit from specialization and trade even if one country is better at producing one good compared to another in absolute terms.
Each point on the curve represents...
What is the next best alternative?
As price rises, the quantity supplied rises; as price falls, the quantity supplied falls.
What is the law of supply?
What is a determinate ?
What are the shifters of Demand?
Which are scarce
-Time
-Education
-Silver
-Corvette
What is
Time
Education
Silver
Corvette
Natalie is a lawyer who can earn $150 per hour in her law practice. She is also an excellent carpenter who can build cabinets three times as fast as the best carpenter, whose hourly wage is $20 per hour. Which of the following is a correct economic statement?
(A) Natalie has an absolute and comparative advantage in both law and carpentry, so she should make her own cabinets while continuing to practice law.
(B) Natalie has a comparative advantage in law so she should specialize in law and hire a carpenter to make her cabinets.
(C) Natalie is three times faster than any carpenter so she should give up her law practice to become a carpenter.
(D) When carpenters work for lawyers, they should charge $150 per hour instead of $20 per hour.
(E) Because Natalie is an excellent carpenter, when the best carpenter works for Mary Jane, he can only charge one third as much, or $6.67 per hour.
(A) Natalie has a comparative advantage in law so she should specialize in law and hire a carpenter to make her cabinets.
What are the three shifters of the curve?
1.) Tech
2.) Resources
3.) Trade
This exists when the demand for a good or service exceeds the supply of the good or service.
What is a shortage?
What is T.R.I.B.E?
Taste
Related Goods
Income
Buyers
Expectation of Future Prices
What are the 3 important economic questions?
What will be produced?
How will it be produced?
Why it will be produced?
Country D can produce either 2 tons of pickles or 4
planes with 10 units of labor. Country Z can produce either 5 tons of pickles or 25 planes with 10 units of labor. Based on this information, which of the following is true?
(A) Country D has an absolute advantage in the
production of cocoa, while Country Z has a
comparative advantage in the production of
cocoa
(B) Country D has a comparative advantage in the
production of Pickles, while Country Z has a
comparative advantage in the production of
Planes.
(C) Country D has an absolute advantage in the
production of Pickles , while Country Z has a
comparative advantage in the production of
Planes.
(D) Country D has a comparative disadvantage in the production of both goods.
B.) Country D has a comparative advantage in the
production of Pickles, while Country Z has a
comparative advantage in the production of
Planes.