Budgeting
This helps people keep track of the money going in and out of their household
Budget
When you don't have enough resources to produce all the things that people would like to have.
Scarcity
A __________ is something that is intended for final use by the consumer.
Consumer good
What are the 4 factors of production
Land labor capital entrepreneur
What are the two different types of income?
Net and Gross
Under the system of ________, each worker learns one task very well.
Specialization
A good that is intended to last more than three years when used on a regular basis is known as a ________
Durable good
On a PPC, when a point is located inside the line it would be classified as ________
inefficient
A vacation would be classified as what type of expense?
Planned
The next best alternative given up when a choice is made. (The one with a value attached)
Opportunity cost
A hammer used buy someone who builds houses for a living would be known as a ________
capital good
On a PPC, a point labeled as efficient would be located where?
on the curve/line
How does a need differ from a want?
A need is something necessary for survival, a want is something you would like to have.
This represents the range of possible production an economy can achieve
Production possibilities curve
The ice cream cone you purchase from the ice cream store would be known as
a nondurable good
Identify the Opportunity cost in this scenario:
A production company goes from producing 12 bikes and 24 helmets, to producing 15 bikes and 15 helmets.
9 helmets
Name the 5 basic elements of a budget.
1. Income
2. fixed expenses
3. planned expenses
4. variable expenses
5. financed payments
All of the factors of production are bought and sold in the
Factor market
Give an example of a good that could be both durable and non-durable (be ready to explain)
Answers may vary
Identify the opportunity cost in this scenario:
Jimmy makes grilled cheese sandwiches for fun. He is very efficient, making 4 sandwiches every 5 minutes. He does this for 1 hour every day. Today, Jimmy decided he wanted to add bacon to his grilled cheeses. This cut his production down to 3 sandwiches every 10 minutes. What was Jimmy's opportunity cost of adding bacon to his sandwiches?
30 grilled cheese sandwiches