Scarcity and the FOP
Opportunity Cost
The PPC
Random
More Random
100
An entrepreneur is someone who recognizes a __________ or ____________, combines the ____________, and creates or provides a _________ or ____________.
Need/want FOP Goods/Services
100
What is the difference between opportunity cost and tradeoffs?
opportunity cost: the most desirable alternative given up as a result of a decision tradeoff: the act of giving up one benefit(s) in order to gain another, greater benefit(s)
100
A point inside a countries PPF would represent a __________ of resources than an economy is capable of using.
Underutilization
100
Give 3 examples of wants from the Berenstain Bears episode (BE SPECIFIC!)
Many answers
100
What are physical objects such as shin guards or pool balls known as?
Goods
200
Name the factors of production, including the two types of one of the factors, and give an example of each.
Land - natural resources (i.e. forests, oil) Labor - effort people devote to tasks (i.e. Mr S teaching) Capital (Physical) - objects used to create goods or supply services (i.e. a machine) Capital (Human) - acquired knowledge and skills (i.e. formal training)
200
Why does every choice involve a tradeoff?
In an decision, you must give up one benefit in order to gain another, greater benefit.
200
True or False, the PPF represents an economy working at its most efficient level.
True (all resources are used in a way to maximize the output of goods and services)
200
Give an example of a situation that would result in an economy's PPF being shifted to the right.
Many...
200
Consider the following individuals a) writer who is hired by a film studio b) a secretary in a law firm c) an ice skater who is part of a professional show d) an artist running a business painting murals
D
300
Explain the difference between SCARCITY and a SHORTAGE
Scarcity is a PRINCIPLE that limited amounts of goods and services are available to meet unlimited wants A shortage is a SITUATION in which consumers want more of a good or service than producers are willing to make available at a given choice
300
Explain the idea of "guns or butter" in terms of tradeoffs.
In order to produce more domestic goods, you have fewer resources to produce military goods...and vice versa.
300
Describe the law of increasing costs. And explain it in terms of "Guns or Butter"
Economic principle that states that as production shifts from making one good or service to another, more and more resources are needed to increase production of the second good or service.
300
When the PPF has shifted to the right, what do economists call this?
Growth
300
Needs and Wants are satisfied by _______ and _______
Goods and services
400
Explain why scarcity and choice are the basis of economics.
Economics focuses on how people seek to meet their unlimited needs and wants by making choices among scarce resources.
400
define marginal cost
the extra cost of adding one unit
400
How would a Scottish decision to break away from the UK affect the UK's PPF? Explain in terms of productive resources.
Inward shift (decrease) Land - area itself and resources from it Labor - any efforts of the workforce Capital - any machines or skills of individuals
400
Increased technology and education can increase a nations PPF and also its maximization of resources to make goods and services. What is this maximization called?
What is Efficiency?
400
A drought would decrease the PPF of a farmer. What affect may a drought have on other sectors of the economy?
Variety of answers
500
Explain Eddie Lacy's decision to go with "All the Cartoons" from an economic standpoint.
Answer depends, Mr S's discretion
500
Consider the following situation, I run a factory that produces a good called widgets. My marginal costs and revenues go as follows: MC1=1, MR1=5; MC2=2, MR2=4; MC3=3, MR3=3.1; MC4=4, MR4=2.5 How many widgets should I produce? And what is my Total Net Revenue or Profit (Benefits-Costs).
3, net benefit = 4+2+.1=6.1
500
Whats the difference between a PPC and PPF?
PPC- GRAPH that shows alternative ways to use an economy's resources. PPF- A line on the PPC that shows the maximum possible output an economy can produce
500
I am offered the choice between a U2 and Beyonce CD. I can only pick one at no direct cost to myself. I LOVE Beyonce and U2, but ultimately decide that I want to go with the U2 album. What is my opportunity cost?
the Beyonce album
500
What is Mr S's favorite color?
Green
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