Definitions
What you sacrifice to get something is known as what?
Opportunity Cost
The idea that all resources are limited is known as what?
Scarcity
If you were the chief economist for a country and you managed to find a new way to produce goods cheaper and faster, what would happen to your production possibility curve?
It would shift upward/to the right
Principle of Opportunity Cost
How long should movie franchises be according to the marginal principle?
Trilogy/3 Movies
A curve that shows the possible combinations of products that an economy can produce
Production Possibilities Curve
The uniquely human way of providing or obtaining goods and services is known as what?
Exchange
You have three choices for spending your Saturday: working a part-time job and earning $80, attending a football game that costs $30 for a ticket, or studying for an upcoming test. If you choose to work, what is the opportunity cost of your decision?
The $30 football ticket/the enjoyment of going to the game and the benefit of studying for your test
What is the alternative to exchange?
Self-Sufficiency
What is the name of the economist from Scotland we mention each chapter?
Adam Smith
The additional cost resulting from a small increase in some activity is known as what?
Marginal Cost
The additional benefit resulting from a small increase in some activity.
Marginal Benefit
In 2020 Aakash bought a used car for $15,000; In 2024 that same car is selling for $20,000. In 2020 Aakash's salary was $50,000 and in 2024 his salary increased to $68,000. Did he have a greater buying power in 2020 or 2024? Need numbers to back up decision
2024, 3.4 cars vs. 3.3 cars
What factors influence the real-nominal principle? (Give at least 2)
Age, location, time period
Name 2 Caribbean countries that use the US dollar
Aruba, Puerto Rico, Barbados, British Virgin Islands, Turks and Caicos
The principle of an exchange between two people makes both better off is known as what?
Principle of Voluntary Exchange
The value of an amount of money in terms of what it can buy
Real Value
If there were a natural disaster, what would happen to your country's production possibility curve?
It would shift inward/to the left.
What would allow a company to not experience diminishing returns?
Controlling all inputs/having no inputs be fixed
Who is the chair of US Federal Reserve who sets interest rates?
Jerome Powell
What is the term for the face value amount of money?
Nominal Value
What is the principle where, "what matters to people is the purchasing power of money, not its face value"
Real-Nominal Principle
Emily has a choice to take a week-long vacation or work overtime for that week. If she goes on vacation, it will cost her $2,000 in travel and expenses. If she works, she will earn $1,500 in overtime pay. What is the opportunity cost and what is the real cost of her going on vacation?
1. $1500
2. $3500
Cargo ships rarely going at full speed to deliver goods due to the cost of fuel exceeding the gain of getting to port early is an example of which principle?
Marginal Principle
What are my cats names?
Kaya and Oliver