Production Possibilities
This curve shows the maximum combinations of two goods an economy can produce.
What is the Production Possibilities Curve? (or reasonable variation of)
A business owned and run by one person.
What is a sole proprietorship?
An economy where tradition and customs guide decisions.
What is a traditional economy?
Maria runs a bakery by herself. She makes all decisions and keeps all profits.
What is a sole proprietorship?
The study of how people make choices with limited resources.
What is economics?
When you produce more of one good and give up some of another, this is measured.
What is opportunity cost?
A business owned by two or more people.
What is a partnership?
An economy where the government makes most decisions.
What is a command economy?
A student has one hour after school and decides to practice basketball instead of studying for math. This shows giving up one activity to do another.
What is a trade off?
Land, labor, capital, and this fourth factor.
What is entrepreneurship?
Points inside the curve represent this situation.
What is inefficient production?
A business owned by shareholders.
What is a corporation?
An economy where individuals and businesses make decisions.
What is a market economy?
A country invests in better machinery and worker training, allowing it to produce more goods than before.
What is an increase in production?
A farmer grows food the same way their family has for generations and trades locally.
What is a traditional economy?
Points outside the curve represent this situation.
What is impossible production?
A business owned and operated by its members.
What is a cooperative?
An economy combining elements of market and command systems.
What is a mixed economy?
People want more cars and fewer bikes, so the country makes more cars and fewer bikes. This change is shown on the Production Possibilities Curve.
What is a movement along the curve?
Choosing to produce more of one good and giving up some of another is called this.
What is a trade off?
When an economy experiences an impact on technology, resources, or productivity from trade, this happens to its production possibilities.
What is a shift/change in production?
An organization created to serve a social cause rather than make profit.
What is a non-profit?
DOUBLE JEOPARDY
All economic systems (traditional, command, market, and mixed) must answer these fundamental issues.
What are the three basic economic questions?
(What to produce, How to produce, Who to produce for)
A country allows entrepreneurship and private property but also controls certain sectors like healthcare or energy.
What is a mixed economy?
A country discovers a large new supply of natural resources, allowing factories to make more goods.
What is an increase in production?