PPF
Points on the curve represent
Efficient use of all available resources
The fundamental problem of economics is
Scarcity
What is a rational person?
Someone who only acts to best achieve their goals
Oil
Land
What is one action a company can take to shift from point c to point b?
Hire more workers, buy more capital goods, utilize new resources, new technology
What is one resource every has the same amount of?
Time
When you choose to invest your resources for future economic growth what do you give up?
Consumption today
A fisherman's boat
Capital
What is the cost and benefits of shifting production from point A to point B?
Cost -100 Phones Benefit +60 Computers
What is the paradox of value?
Value is determined both by scarcity and utility
Thinking at the margin refers to?
Making small incremental changes and taking action if marginal benefits outweigh marginal costs
A scientist who invents a new prescription drug
Entrepreneur
What are the cost and benefits of shifting from point B to point A?
Cost -60 Computers Benefit +100 Phones
Why is water less expensive than gold?
Water is much more plentiful than gold on Earth. Less scarcity means less value.
What is the difference between Opportunity Costs and Trade-offs?
Trade-Offs are all possible choices Opportunity cost is the second best option you give up
A teacher
Labor
How can output reach point d in the future?
Increase any of the factors of production, capital, land, labor, or a new idea
TINSTAAFL means?
There isn't no such thing as a free lunch
Various Answers
How can someone improve their human capital?
Go to school/training to learn new skills or knowledge, improve their health