Factors of Production
What are the three factors of production?
Land, labor, and capital
What is the principle of limited quantities trying to meet unlimited wants?
Scarcity
What does a production possibilities curve (PPC) show?
Trade-offs between two goods/services
What is an alternative that we sacrifice when we make a decision?
Trade-off
What is the exact temprature rn
lemme check
What is “land” in terms of production? (Think naturally, dont overthink this. what does land give you?)
All natural resources used to produce goods/services
What is it called when goods or services are unavailable?
Shortage
What does the PPF represent?
The maximum possible output of goods and services
What is the most desirable alternative given up?
Opportunity cost
who is on the 50 dollar bill?
THE Ulysses S. Grant
What is “labor” in terms of production?
The effort people devote to a task for which they are paid
Why does scarcity always exist?
Resources are limited but wants are unlimited
What happens if an economy grows?
The PPC shifts right
What is the “guns or butter” dilemma?
When governments choose between military and consumer spending
In which country will you find the tallest roller coaster in the world
What is “capital” in terms of production?
Human-made resources used to create goods/services
Give one example of something that could cause a shortage.
Natural disaster, war, or sudden demand spike
What happens if an economy shrinks?
The PPC shifts left
What is a government’s opportunity cost for increasing military spending?
Less money for consumer goods
Whoever has the best hidden talent wins
...
Who brings together land, labor, and capital to make profit?
Entrepreneurs
What problem does economics try to solve?
How to satisfy needs and wants with limited resources
What do the two axes of a PPC represent?
The two goods or services being produced
What is it called when opportunity costs are compared with benefits?
Cost-benefit analysis
How?
Wow