Economic Thinking
Our wants are ____.
What is unlimited?
An economic model, in the form of a line graph, that shows how an economy might use its resources to produce two goods
What is a Production Possibilities Curve?
The amount of a good or service that is bought at a particular price
What is demand?
Land, Labor, Capital, and Enterprise
What are the factors of production?
The value of the next-best alternative you give up when making a decision
What is an opportunity cost?
The amount of a good or service which sellers provide at a particular price
What is supply?
A delivery truck worker
What is labor?
Statements based on opinions or beliefs rather than facts fall under this type of economics.
What is normative economics?
The price where quantity supplied equals quantity demanded
What is equilibrium?
The tools, machines, and buildings used in the production of other goods and services
What is capital?
Sam can produce something at a lower opportunity cost than Alex
What is comparative advantage?
A price is set below equilibrium
What is a shortage?
The individual that assumes the risk
Country A can make 20 bikes. Country B can make 12 bikes.
What is absolute advantage?
A price is set above equilibrium
What is surplus?