Cognitive Biases
Production Possibilities Curve
Scarcity & Factors of Production
Law of Demand
2 Sector Flow Chart
100
A preconceived opinion about an object that a person is unaware of
What is unonscious Bias
100
What does the PPC model demonstrate? (two things!)
What is opportunity cost and efficient production? (the decision making process)
100
The study of choices that an individual, a business, or a government has to make in dealing with the problem of scarcity
What is Economics?
100
The law of demand states that as prices decrease
What is Quantity demand increases.
100
The name of the two Markets in the Circular Flow Model
What are the Product and Resource market?
200
Confirmation bias refers to the tendency to:
What is look for information that is consistent with one’s beliefs
200
Where is 100% efficiency found on the PPC model?
At any point along the line! If you're on the line, you're fine!
200
Unlimited Wants + Limited Resources =
What is Scarcity?
200
Consumers will buy more of a good when its price is lower and less when its price is higher.
What is the law of demand
200
The names of the two sectors in the Two Sector circular flow model
What are Households and Businesses?
300
When people have the tendency to think they know more than they do
What is overconfidence
300
On the PPC model, the name for a point BELOW the curve
What is underutilization or waste?
300
The second best alternative, your number TWO choice. What you must directly give up to get your #1 choice
What is Opportunity Cost?
300
When the price of a good increases, the quantity demanded ____.
What is decreases
300
In which market do you sell your labor?
What is the resource market
400
Which cognitive bias might lead a consumer to continue investing in a failing business venture?
What is sunk cost fallacy
400
On the PPC model, the name for a point ABOVE the curve.
What is The Future or Production Possibilities Frontier?
400
The four factors of production or FOP otherwise known as Resources
What are the LLCE (Labor, Land, Capital & Entrepreneurship)
400
According to the law of demand, price and quantity demanded have a ___________ relationship
What is an inverse
400
In the 2 sector flow chart, what sector owns the factors of production
What is the households
500
An automatic, unintentional preference or aversion.
What is an unconscious bias
500
The 3 ways to produce above the current PPC curve
What are 1) New Technology, 2) Additional Resources, 3) International Trade?
500
When you sell your LLCE (Resources) this is the income received for each type of resource.
What are WRIP (Wages, Rent, Interest & Profit)?
500
What is Demand
500
What is point F