PPF
Points on the curve represent
Efficient use of all available resources
The fundamental problem of economics is
Scarcity
What is a sunk cost?
A cost you can't undo, so it shouldn't factor into future decisions
Oil
Land
What is one action a company can take to shift from point E to point A?
Hire more workers, buy more capital goods, utilize new resources, new technology
What is one resource every has the same amount of?
Time
When using marginal thinking, when do you know you have reached the best decision?
When Marginal benefits are equal to marginal costs.
A fisherman's boat
Capital
What is the cost and benefits of shifting production from point A to point B?
Cost -100 Phones Benefit +50 Computers
What are the two factors that determine something's 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 D to point B?
Cost -200 phones Benefit +150 Computers
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 F in the future?
Increase any of the factors of production, capital, land, labor, or a new idea
There isn't no such thing as a free lunch means?
We always face trade offs when making a choice
Various Answers
How can someone improve their human capital?
Go to school/training to learn new skills or knowledge, improve their health