Basic Concepts
The most fundamental problem of economics.
What is scarcity?
The market where businesses buy the factors of production.
What is the factor market?
Anything that you give up.
What is a trade-off?
The goal of a free-market economy.
What is profit?
If the US can produce more wheat and oil than Mexico, it is said to have this...
What is an absolute advantage?
The idea that nothing in life is free.
What is TINSTAAFL?
(There is no such thing as a free lunch)
The government takes in these from businesses and households.
What are taxes?
The next best alternative given up.
What is the opportunity cost?
Economic system of the US and China.
What is a mixed economy?
If Mexico can produce oil at a cheaper cost than the United States, it is said to have this...
What is a comparative advantage?
The market where businesses bring their "econos" to sell to consumers.
What is the product market?
Any point outside of the PPC is considered this.
What is impossible?
Economic and social goal that protects people who face unfavorable economic conditions such as layoffs, injuries, or natural disasters.
What is economic security?
Country A has 6 workers. These resources can be used to make either cell phones or microwaves. Workers can produce either 4 cell phones or 4 microwaves.
Country B has 6 workers. These resources can be used to make either cell phones or microwaves. Workers can produce either 1 cell phones or 3 microwaves.
Who should produce the cell phones and who should produce microwaves?
Cellphones = Country A
Microwaves = Country B
The basic economic questions every society must answer.
What are: What to produce, How to produce, and For Whom to produce?
What are goods and services?
Any point inside of the PPC is considered this.
What is underutilized?
Controls the factors of production and answers the basic economic questions in a command economy.
What is the government?
Tony has 6 cooking sessions. These resources can be used to make either pizza or salads. Cooking sessions can produce either 1 pizza or 2 salads.
Nino has 6 cooking sessions. These resources can be used to make either pizza or salads. Cooking sessions can produce either 1 pizza or 4 salads.
Who should produce pizza and who should produce salads?
Tony = Pizza
Nino = Salads
The study of how people satisfy wants and needs with scarce resources.
What is economics?
Most common resource households provide to businesses.
What is human labor?
All the points along the PPC are considered this.
Economic and social goal that ensures protects people from discrimination when it comes to employment.
What is economic equity?
United States has 100 workers. These resources can be used to make either pounds of cheese or bushels of wheat. Workers can produce either 3 pounds of cheese or 12 bushels of wheat.
France has 100 workers. These resources can be used to make either pounds of cheese or bushels of wheat. Workers can produce either 2 pounds of cheese or 4 bushels of wheat.
Who should produce cheese and who should produce wheat?
US = Wheat
France = Cheese