Ten Principles of Economics
What is the definition of Economics?
What is the study of how society manages its SCARCE resources.
Is the following statement positive or normative: Price Ceilings cause shortages?
What is positive statement
The definition of comparative advantage
What is the ability to produce a good at a lower opportunity cost than another producer.
The key concept of Capitalism
What is people are free to make their own decisions in buying and selling
China has 10 million workers. Each worker can produce 1 ton of steel or 3 tons of rice. The U.S. has 8 million workers. Each worker can produce 2 tons of steel or 4 tons of rice. Draw the PPF for each country.
What is ...
The principle that relates to something that induces a person to act
What is People Respond to Incentives
Successfully draw the Circular Flow Diagram
What is...
True or False: One company can have the absolute advantage if both Good A and Good B
What is true
The difference between Feudalism and Mercantilism
What is mercantilism involves more trade than feudalism but they both limit trade outside the economy.
China has 10 million workers. Each worker can produce 1 ton of steel or 3 tons of rice. The U.S. has 8 million workers. Each worker can produce 2 tons of steel or 4 tons of rice. Which country has an absolute advantage in the production of steel? Which country has an absolute advantage in the production of rice?
What is China (for both)
List all Ten Principles of Microeconomics
1. People face trade-offs.
2. The cost of something is what you give up to get it.
3. Rational people think at the margin.
4. People respond to incentives.
5. Trade can make everyone better off.
6. Markets can usually a good way to organize economic activity.
7. Governments can sometimes improve market outcomes.
8. A country's standard of living depends on its ability to produce goods and services.
9. Prices rise when the government prints too much money.
10. Society faces a shot-run trade-off between inflation and unemployment.
The cost of inputs for Good A increases while the cost of inputs for Good B decreases, what does the new PPF look like?
What is ...
Who has the absolute advantage in shoes?
Who is Amanda?
Sweden is an example of this economic structure
What is socialism
China has 10 million workers. Each worker can produce 1 ton of steel or 3 tons of rice. The U.S. has 8 million workers. Each worker can produce 2 tons of steel or 4 tons of rice. Which country has a comparative advantage in the production of steel?
What is China
Bob is a senior in high school, he is deciding if he should go to college. He did the math and found that tuition per year is $16,000, the cost of books per year is $200, the cost of dorming is per year $4,000, and the cost of food is $5,000 for all 4 years. If Bob does not go to college, he will continue to work as a lifeguard and earn $35,000 per year. What is the opportunity cost if Bob goes to college?
What is $220,800
OC = 4 x (16,000 + 200 + 4,000) + 4 x (35,000)
OC = 4 x (55,200)
OC = 220,800
The point within the PPF is
What is low efficiency
Who has the comparative advantage in hoodies?
Who is Amanda?
If your father is a farmer then you will be a farmer
What is Feudalism
China has 10 million workers. Each worker can produce 1 ton of steel or 3 tons of rice. The U.S. has 8 million workers. Each worker can produce 2 tons of steel or 4 tons of rice. Which country has a comparative advantage in the production of rice?
What is US
Andrew owns a crab boat. He wants to hire more people to work. By himself, Andrew can catch 3 crabs. He is planning on paying the workers $20 per day. The price of 1 crab is $10. Fill in the table. How many additional workers should Andrew hire?
What is 3 additional workers.
The opportunity cost for 1 mango for Abby and Morgan
Abby - 5 cars
Morgan - 8 cars
The cost range Izzy is willing to trade 1 shoe to Amanda.
The least amount of money Izzy is willing to trade 1 shoe to Amanda is 1/3 hoodies while Amanda will not trade for anything greater than 1/2 hoodies.
The economy structure during the 16 - 18 centuries within Europe
What is mercantilism
China has 10 million workers. Each worker can produce 1 ton of steel or 3 tons of rice. The U.S. has 8 million workers. Each worker can produce 2 tons of steel or 4 tons of rice. If the United States and China engage in trade, will the US produce less steel or more steel than it would under a no-trade scenario?
What is Less