Scarcity & Factors of Production
What economic concept explains why choices must be made due to limited resources?
What is scarcity?
Define opportunity cost
What is the value of the next best alternative given up?
What does a point ON the PPC curve represent?
What is efficient use of resources?
What system emphasizes freedom and choice? (Little to no government)
What is the free market?
Congress passes an anti-trust law. What is the role being fulfilled?
What is promoting competition?
Which of the following is NOT a factor of production?
A) Land
B) Labor
C) Scarcity
D) Capital
C- Scarcity
You can bake 10 loaves of bread or shovel 2 driveways per hour. What is the opportunity cost of shoveling 1 driveway?
What is 5 loaves of bread?
What does a point INSIDE the PPC curve represent?
What is inefficient use of resources?
Who makes major economic decisions in a command economy?
What is the government?
Taxing polluting companies represents what government function?
What is discouraging negative externalities?
In the bread-making process, what is the best example of physical capital?
What is the oven used to bake the bread?
You work 15 hours/week. Can you bake 100 loaves and shovel 10 driveways in that time?
You can bake 10 loaves of bread or shovel 2 driveways per hour
What is no, it’s unattainable?
If moving from point B to C means producing fewer of good Y, what is the opportunity cost?
What is the amount of good Y given up?
Mixed market economies combine what two elements?
What are government regulation and free enterprise?
The government builds a new interstate highway system to improve transportation and help businesses move goods more efficiently. Which role of government does this action best represent?
What is providing public goods?
George goes back to school to earn a master’s degree. What kind of capital is he improving?
What is human capital?
hat’s the marginal cost of buying a second bag of apples if 1 costs $6 and 2 cost $10?
What is $4?
What does a point outside the PPC curve indicate?
What is currently unattainable?
Why do command economies often fail?
What is lack of incentives?
Name a public good the government provides.
What is a road, national defense, public education, etc.?
List the four factors of production
Land, Labor, Capital, Entrepreneurship
Karen gives up 4 hours of $10/hr work to attend a $50 concert. What’s her economic cost?
What is $90?
Give one reason why a PPC would shift outward.
What is technological advancement, increased resources, better education/training?
What role do consumers play in a mixed economy?
What is they create supply and demand?
In a mixed economy, how does the government protect consumers?
What is through regulation and safety laws?