Monsters, Inc.
___________________ is the driving force behind not getting everything we want.
Scarcity
If a country is actively preparing to go to war, are they producing more guns or butter?
Guns
If there is a point on a PPC Graph that lies below the Production Possibilities Frontier, what does that point represent? (What is production at that point called?)
Underutilization
If a PPC graph shows that all resources are being used effectively in an economy, what is that called?
Efficiency
What is scarce?
Everything!
What line shows the maximum possible output for a nation's economy?
Production Possibilities Frontier (PPF)
Ethan has the choice between going to work after school and going to watch the JV football game. If he chooses to go to the football game, what is the opportunity cost?
- Making money
If a new technology appears in an economy that increases efficiency, which direction will the PPF move in?
To the right
What are the 4 Factors of Production?
Land, Labor, Human Capital, Physical Capital
Occurs when businesses will not or cannot offer goods or services at current prices.
Shortage
Define "opportunity cost"
The most desirable alternative given up as a result of your decision
What is the name for what you do when you consider the costs and benefits of a decision (weight the pros and cons)?
Marginal Analysis
A country produces 45 million desk chairs and 20 million cherry trees. If they choose to change their output and instead produce 40 million desk chairs and 32 million cherry trees, what is the opportunity cost?
5 million desk chairs
What is the name of someone who takes a risk to combine factors of production and create a business?
Entrepreneur
What is THE economic problem?
Limited resources, unlimited wants
When we choose an option, what is the name for all the other options we give up?
Trade-offs
What is human capital also known as?
Enterprise
Economics is the study of how people make ______________.
Choices
Shortages are _______________.
Scarcity is _________________.
Ms. Goodwin has the choice between grading papers after school or going on a run. If she chooses to go on a run, what is the opportunity cost?
-Finishing grades
-Getting timely feedback to students