economic principles
Peoples wants are unlimited making this principle ever present
what is scarcity
What is the most common type of economy today?
What is mixed economy
people give up things to get something that they want more in a _______
What is a voluntary exchange?
Out of a store, amazon, and a classroom one is not a market
what is a classroom
This is the lost value of the next best alternative when making a choice
what is opportunity cost?
He is considered the father of modern economics
Who is Adam Smith
In a command economy this group is in charge of the economy
what is the government
this is how trade increases the value of an item
what is it transfers it to someone who values it more?
Bushels of corn grown per acre is a measure of _______
what is productivity
When someone can produce something for a lower opportunity cost they have this type of advantage
what is comparative advantage
limited resources make this necessary
what are tradeoffs
Government being completely uninvolved and pure economic freedom is defined by this term
what is laissez faire
an assistant at a tailoring shop focusing on only fixing zippers is an example of this
what is specialization
Economies are most effiecent when they do not waste any resources. The way that they do that is by reaching full ________.
what is employment
Joey checks out a book from the library and has to return it before he finishes it to avoid the late fee, this is his opportunity cost
what is not finishing the book
These are the 3 fundamental economic questions
what is what to produce, how, and for whom
This is the most common goal for a traditional economy
what is stability
This term explains when we count on others to provide the goods and services that we need
what is economic interdependence
These are the three factors of production
what are land, labor, and capital?
Steve can make 10 brownies but if he does he cannot make 70 carrot cakes, he has an opportunity cost of _____
What is 7 carrot cakes
"We ought to lower taxes" is this type of economics
What is normative economics
The United States government enforces binding contracts and protecting property rights. this is because it is a _________
This keeps states from putting up trade barriers leading to interdependence
what is the commerce clause
Ocean waves are ever present and used to make energy. Making them this type of resource.
What is a perpetual resource
If farmer A can produce 25 bananas and 5 oranges while farmer B can produce 20 bananas and 10 oranges, this farmer has the absolute advantage in growing oranges
Who is farmer B