The Basics
The definition of economics
What is the study of how people make choices?
This economic system is characterized by no government involvement in the 3 economic questions, instead people and businesses answer them, and it goes by many names
What is a market economy?
Crude oil, sugar cane, corn, cows are examples of this
Land
Ms. Young has a dilemma. She can either go to Senior Night for Boys Basketball or go get her car serviced. What is her opportunity cost if she decides to go get her car serviced?
What is Boys Basketball Senior Night?
A PPC shows a ______________ amount of resources
What is a maximum?
The fact we make choices because of unlimited wants and limited resources
What is scarcity?
Tradition, culture, and social norms decide the answers to the 3 basic economic questions
What is a traditional economy?
Teachers, welders, machine operators, drivers are examples of this
Labor
What is $3 Starbucks drink?
A point inside the PPC curve means that an economy is....
What is underutilizing resources?
The study of the behavior of the economy as a whole; concerned with large-scale economic activity
What is macroeconomics?
What is a command economy?
College, certifications, trainings are examples of this
Capital
You have upcoming test for Ms. Young and she was nice enough to give you a review day. However, you are considering the possibility of skipping school to goof off and not do any of her work. What is your opportunity cost if you decide to skip school?
The point above a PPC curve means what?
The value of the next best alternative given-up
What is opportunity cost?
Characterized by higher wages and higher standard of living
What is economic growth?
Why the factors of production are necessary?
To make quality goods and services= land+labor+capital+entrepreneurship
As usual, Florida High has scheduled multiple events at the same time. Ms. Young as always wants to support her seniors, however; softball, baseball, and chorus senior night are all at the same time. For every 1 hour she attends one event, she gives up 2 hours for the other 2. What is her trade-off if she decides to attend 1 hour of softball?
2 hours of baseball and 2 hours of chorus
Natural disasters, wars, pandemics are reasons a PPC shifts in this direction?
What is to the left?
Monetary Policy guy, #2 guy in economics, believed the government should only spend money during recessions
Who is Milton Friedman?
Patents and copyright are amongst the items that promote competition and innovation when these are protected
What are property rights?
The most important factor of production
What is entrepreneurship?
Ms. Young is having another dilemma. She could either go to South Carolina for her birthday (a 7 hour drive) or she could go to St. Petersburg for her birthday (a 5 hour drive). If she goes to South Carolina, what is her opportunity cost?
What is the 2 hours she saves on time by going to St. Petersburg?
Innovations in technology, and increase in resources for both products, and capital are reasons a PPC will shift in this direction?
What is to the right?