Factors
At the Margin
Production Possibilities
Week 1
Week 2
100
The fundamental problem of unlimited wants and limited resources that exists in all societies.
What is SCARCITY?
100
The tradeoff associated with adding one additional unit to production.
What is MARGINAL COST?
100
Production possibility curves measure this.
What are OPPORTUNITY COSTS?
100
The best thing you give up in a decision.
What is OPPORTUNITY COST?
100
Knowledge and skills workers acquires through training, education and experience
What is HUMAN CAPITAL?
200
The next best alternative which is sacrificed when a decision is made.
What is OPPORTUNITY COST?
200
The gain associated with adding one additional unit to production.
What is MARGINAL BENEFIT/REVENUE?
200
A point below the production possibilities curve.
What is UNDERUTILIZATION OR INEFFICIENT PRODUCTION?
200
A situation in which quantity demanded is greater than quantity supplied.
What is SHORTAGE?
200
Institutions that stand between borrowers and savers.
What is a FINANCIAL INTERMEDIARIES?
300
Natural resources such as hydrogen, carbon, and helium.
What is LAND?
300
Division of labor to promote expertise.
What is SPECIALIZATION?
300
A point above the production possibilites curve.
What is CURRENTLY UNATTAINABLE.
300
Holding everything else constant, when the price of a product falls, the quantity demanded of the product will increase.
What is THE LAW OF DEMAND?
300
A government reform that encourages greater investment and results in higher interest rates and savings.
What are INVESTMENT INCENTIVES?
400
The skills, training, health, and education of labor.
What is HUMAN CAPITAL?
400
Maximum outputs with minumum inputs.
What is EFFICIENCY/PRODUCTIVITY?
400
The direction a production possibilies curve would shift if an entrepreneur invested in human or physical capital.
What is SHIFT RIGHT?
400
The costs of a basket of goods and services bought by firms.
What is PRODUCER PRICE INDEX?
400
An excess of government spending over tax revenue.
What is A BUDGET DEFICIT?
500
Products which are purchased in order to produce other products.
What are CAPITAL GOODS?
500
The point at which one should STOP producing.
What is when marginal cost and marginal benefit are EQUAL?
500
Graph showing combinations of output that can be produced given available factors of production and technology.
What is PRODUCTION POSSIBILITY CURVE?
500
The total market value of all goods.
What is GROSS DOMESTIC PRODUCT (GDP)?
500
Cyclical, structural and frictional
What are TYPES OF UNEMPLOYMENT?
M
e
n
u