Scarcity and Choices
This basic economic problem forces people to make choices because resources are limited and wants are unlimited.
What is scarcity?
Natural resources like coal, oil, or farmland fall under this factor of production.
What is land?
A point inside the PPC curve represents this kind of production.
What is inefficient?
This compares the additional costs and benefits of one more unit.
What is marginal analysis?
The specific cost of the next best alternative given up when making a choice is called this.
What is opportunity cost?
A person who starts a new business and takes on the risk of profit or loss is known as this.
Who is an entrepreneur?
A point on the PPC represents this use of resources.
What is efficient?
The formula for marginal cost is this.
What is benefit / cost
Choosing to study for an exam instead anything else you could have done with your time.
What are trade-offs
A worker’s education and skills which help produce a good or service.
What is human capital?
A point outside the PPC represents this.
What is impossible to produce?
This phrase describes the government’s decision between producing more military goods or consumer goods.
What is “Guns or Butter”?
A delivery truck, a factory machine, or a computer are examples of this type of capital.
What is physical capital?
The higher value set at point A is set here.
What is the Y-axis?
This problem occurs because individuals act in their own self-interest, harming long-term community resources.
What is Tragedy of the Commons?
Buying new clothes for school instead of paying your phone bill shows the difference between these two economic ideas.
What is wants and needs?
A phone, car, and pair of shoes are examples of this, while a haircut, an oil change, and lawn care are all examples of the opposite.
What are goods and services?
The slope of the PPC shows this economic concept.
What is opportunity cost?
A farmer gives up 10 units of wheat to gain 20 units of milk. The marginal cost of each unit of milk is this many units of wheat.
What is 0.5 wheat?