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Factors of Production
Production Possibilities
Comparative Advantage
Supply and Demand
International Trade
100
A person working in a factory is an example of which factor of production
What is Labor?
100
What you forgo when you make a choice.
What is Opportunity Cost
100
When one country is better at making a product than another (hint: the output number is higher than the other countries, e.g., Country A produces 6 units of coffee while Country B produced 4 units of coffee, given the current resources)
What is Absolute Advantage?
100
Aggregate Demand shifts to the right when government spending
What is increases?
100
A surplus in the capital (financial) account means a ______ in the current account.
What is a deficit?
200
The machinery that a person operates in a factory is an example of which factor of production
What is Capital?
200
When an economy operates inside the PPC/PPF.
What is Inefficiency or operating below full employment?
200
The ability of an economy to produce a good at a lower opportunity cost than another country.
What is Comparative Advantage.
200
A negative supply shock causes AS to shift to
What is to the left (decrease)?
200
The current account is.
What is the sum of the balance of trade (goods and services exports minus imports), net income from abroad and net current transfers?
300
Mark Zuckerberg, the creator of Facebook, is an example of which factor of production?
What is Entrepreneurship?
300
Any point outside the PPC/PPF
What is unattainable given the current resources?
300
For input problems (time), which country has the absolute advantage? USA: 1/2 hour to produce 1 unit of tofu Japan: 2 hours to produce 1 unit of tofu
What is the United States?
300
An increase in input costs, such as higher rent or energy bills causes...
What is the aggregate supply curve to shift to the left?
300
The capital account is
What is the exchange of assets?
400
The knowledge and skills acquired through training and experience is
What is human capital?
400
The bowed-out shape of the PPF/PPC indicates
What is an increasing opportunity cost to produce an additional unit of a certain good?
400
United States: 100 cars 200 tomatoes France: 90 cars 100 tomatoes Which country has the comparative advantage in producing cars (output)?
What is France?
400
__________ (2 words) are goverment transactions NOT included in GDP because these payments are not exchanged for any goods or services.
What are subsidy or transfer payment?
400
What is net capital outflow
What is the amount of money leaving the country minus the amount of money coming into the country (foreign assets purchased by domestic residents minus domestic assets purchased by foreigners)?
500
Wind used to power wind turbines to generate energy is an example of
What are natural resources/ land?
500
Shifting a point along the PPC means
What is only an allocation of current resources is changing? For instance, more resources are devoted to producing good A than good B so the point moves along the curve towards good A.
500
The purpose of determining comparative advantage is:
What is to figure out if nations should specialize in producing a good or service and engage in trade?
500
A company purchasing new computers to increase its efficiency is included in what part of GDP?
What is Investment?
500
What will happen to a country's exports and balance of trade if that country's currency appreciates?
What is exports will decrease and the balance of trade will move towards a deficit as exports decrease and imports increase?