Opportunity Cost
John has $5, he can go to Taco Bell or McDonalds for dinner and he chooses to spend his $5 at McDonalds. What is his opportunity cost?
Taco Bell
A point BELOW the PPF curve represents what?
An inefficient use of resources
Scarcity exists because resources are ______ while human wants are ______.
limited, unlimited
The four factors of production are land, labor, capital, and ______.
Entrepreneurship
Because resources are scarce, people must make these.
Choices
Mia has 2 hours to do homework or watch a movie. She chooses to spend her time watching a movie, what is her opportunity cost?
A point ON the PPF curve represents what?
An efficient and attainable use of resources.
The three basic economic questions are: What to produce, how to produce, and ______?
For whom to produce
Workers who provide physical or mental effort are considered this factor of production.
Labor
A student chooses between studying and playing video games because they have limited ______.
Time
Sid has $20,000 to start a new business, he could create a lawn mowing business or a food truck. He chooses to use his money to start the lawn mowing business, what is his opportunity cost?
The food truck
A point OUTSIDE/ABOVE the PPF represents what?
What leads to economic scarcity?
People have unlimited wants and we have limited resources to fulfill those wants.
Natural resources such as water, forests, and minerals belong to this factor.
Land
When making an economic decision, people should compare the expected costs and ______.
Benefits
A country has enough resources to make 1,000 computers or 5,000 smartphones. The country chooses to produce the smartphones. What is their opportunity cost?
1,000 computers
A country discovers a new technology that allows them to produce more Doritos and Dino Nuggets. What would happen to the PPF?
It would shift outwards/right
Because resources are scarce, individuals, businesses, and governments must decide how to use their resources. These decisions involve answering these three basic economic questions. What are the 3 basic economic questions?
What to produce, how to produce, and for whom to produce
A factory, computer, or machine used to produce goods is an example of this factor.
Captial
A student has $100 but wants to buy a video game, shoes, and headphones that together cost $200. This illustrates the problem of ______.
Scarcity
A country used to produce 1,500 bags of Doritos and 2,000 Dino Nuggets. They chose to shift production and now they produce 1,000 bags of Doritos and 2,500 Dino Nuggets. What is their opportunity cost?
500 bags of Doritos
Name one situation that would shift a PPF to the right/outward.
What is the relationship between scarcity and opportunity cost?
Scarcity leads to the need to make choices and all choices involve opportunity cost
This factor of production involves taking risks and organizing the other resources to create a business.
Entrepreneurship
A city has enough money to build either a new park or a new library, but not both. It chooses the library. The park represents this economic concept.
Opportunity cost