Supply
Demand
Production Possibilities
Things
Stuff
100
The Law of Supply says that when Price increases Quantity Demanded ______________.
Price (increases) --> Quantity Demanded (increases)
100
The Law of Demand says that when Price of a good or service decreases, the Quantity Demanded ______________.
Price (decreases) --> Quantity Demanded (increases)
100
What are the three economic questions every society must answer?
WHAT, HOW, & WHO
100
If Sonic can produce 300 gold rings and 100 fireballs while Mario can produce 200 gold rings and 150 fireballs... who has the absolute advantage in fireballs?
Mario (150 > 100).
100
When you have unlimited wants and limited resources...
Scarcity
200
Why does the Supply Curve go upward?
Due to diminishing returns... (businesses experience increasing returns up to the point they do not...so then they stop).
200
In order for you to have demand for something you have to have the ___________ and _______________ to pay for it.
Willingness, Ability
200
What are the three main types of economies?
Centrally-planned(Command), Free Market(Capitalistic), & Mixed economy.
200
If Bob has a lower opportunity cost of producing sponges than Patrick, but Patrick has a comparative advantage in producing starfish. Bob should import and export what?
Bob wants to import starfish, export sponges. Since he has a comparative advantage (lower opportunity cost) in producing sponges he should export that and import (after trade) the starfish from Patrick.
200
The study of a large economic aggregates...
Macroeconomics
300
If we are analyzing the market of LIGHTNING and the price of Pikachus (a resource) goes up, what will happen to the Supply curve?
It will decrease (shift to the left).
300
Give the THREE reasons the Law of Demand occurs (why is it downward sloping):
Substitution Effect, Income Effect, Law of Diminishing Marginal Utility.
300
What are the Factors of Production?
Land, Labor, Capital, Entrepreneurship
300
What are the shifters of the PPC?
Quantity/Quality of Resources, Technology, Trade (policy).
300
ALL the alternatives that we give up when we make a choice.
Trade-offs
400
What are the five determinants of Supply?
Cost/Availability of Resources, Technology, Government Action, Number of producers (market size), and future expectations (of producers).
400
FIRST team to the board to draw a correctly labeled DEMAND graph of Pancakes, illustrating what happens when the price of a related good (waffles) decreases significantly.
(Draw just a demand curve, with a shift to the left)
400
First person to the board to draw a CORRECT production possibilities curve comparing Guns and Butter with point A for an allocative efficient point favoring Guns, point B for an unattainable point, and point C representing a point that shows the result of increased unemployment and inefficient resources.
Point "A" should be more towards whatever axis says "guns", point "B" should be outside the curve, and point "C" should be inside the curve.
400
If Captain America can produce 100 shields and 100 Repulsor Beams (basically laser guns) while Iron Man can produce 300 shields and 150 Repulsor Beams. Who has the comparative advantage in shields?
Iron Man (he makes the shields, Cap just wields it...duh).
400
Define "Utility," "Marginal," and "Allocate"
Utility is the benefit/satisfaction received from something. Marginal is the "additional" of something or "one more unit." Allocate is to "distribute."
500
First person to the board to draw a correctly labeled SUPPLY curve of Economic students (in classes) illustrating what happens when the government increases subsidies to students for taking econ classes.
Subsidies causes MORE students to join economic classes... so the (supply curve only, will shift to the right)
500
What are the five determinants of demand?
Income, Price of Related Goods, Consumer Tastes/Preferences, Number of Consumers (market size), & future expectations (of consumers).
500
First person the board to draw a CORRECTLY labelled Circular Flow Model showing the three primary entities, the two markets, and their interchange.
Holy Wowzers!
500
First person to the board to draw a correctly-labeled SUPPLY AND DEMAND CURVE of Commercial Gasoline (for cars)... when the price of oil increases at the same time that consumers become more interested in electric cars due to a recent study.
both decrease (shift left).
500
"The price of a Big Mac should be $10 because then McDonald's employees can have higher pay and a higher standard of living" is an example of a ________________ statement.
Normative (reflects value judgments)
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