PPCs/PPFs
PPCs illustrate trade-offs between how many goods
Two
The term for the branch of economics that studies the overall ups and downs in the economy
Macroeconomics
The concept of providing goods and/or services to others and receiving goods and/or services in return is known as
trade
You can either spend $100 on a new economics textbook or a new CD player. If you choose to buy the new economics textbook, the opportunity cost is
The new CD player
The point where the supply and demand curve intersect is called the
equilibrium
A point ON the PPC is considered both _________ and _________
feasible; efficient
Economics is the study of _______ and ________
scarcity; choice
If Sara can produce more boots in an hour than Nate can, Sara has the ____________
absolute advantage
Johnny requires 4 hours to build a fort. Clint only needs 2 hours for the same task. Who has the absolute advantage in fort building?
Clint
Name the four types of resources
Labor, Land, Capital, Entrepreneurship
Economic growth causes a PPC to shift ________
outward
What two factors cause economic growth
1) Increase in resources
2) Technological improvements
If you have a lower opportunity cost for producing a good, you have the ____________
comparative advantage
Entrepreneurship is a form of ________ capital
human
Who wrote "The Wealth of Nations"
All points that fall on a PPC are what kind of efficient
Productively efficient
Economic measures that summarize data across many different markers are _______________
economic aggregates
Gains from trade arise due to
specialization
Is the following statement normative or positive economics:
If stores lower the price of a product, people will buy more
Positive economics
What kind of economics makes statements about how the economy SHOULD work
Normative Economics
If the curve is concave to the origin, opportunity costs are ________
increasing
The concept that an economy is efficient if there is no way to make some people better off without making others worse off is known as ____________
Pareto efficiency
If world price is below the equilibrium, a country will ________ the good
import
For Bob, 80 oranges cost him 40 robots. For Sally, 60 oranges cost her 20 robots. Find a fair trade between the two.
ANSWERS MAY VARY
Ex: Bob gives 1 robot in return for 2.5 oranges from Sally.
(Find OCs, see who has CA, outline trade)
The USSR is an example of what type of economy
Command economy