Vocab
Quality of life based on the possession of the necessities and luxuries that make life easier
Standard of living
What are the 3 basic questions we make in economics?
What, how, for whom to produce
What is the difference between a capital good and a consumer good?
Capital goods make other goods
Consumer is final user
According to your textbook, what does the "e" represent in the production possibilities frontier?
Cost of idle resources
The next best trade-off NOT chosen
Opportunity Cost
What are the factors of production?
Land, labor, capital, entrepreneurship
What is the measure of the amount of output produced by a given amount of inputs in a specific period of time?
Productivity
Another term that means "alternative choices"
Trade-offs
Market where productive resources are bought and sold
Factor market
Describe the fundamental economic problem
Scarcity
When we rely on others and others rely on us to provide the goods and services that we consume, this is called
Economic interdependence
According to the textbook, what does the letter "d", which is outside of the production possibility frontier, indicate?
Economic growth
DOUBLE JEOPARDY!! (800 PTS)
Sum of the economic products that are tangible, scarce, useful, and transferable
Wealth
What is the difference between a want and a need?
Want--way of expressing a need
Need--basic requirement for survival
What is the difference between division of labor and specialization?
Division of labor--all producing part of whole
Specialization--only do one thing best
When making economic decisions, people try to get the most value for their investment, in other words, "the most bang for their buck." What is the name of the decision-making strategy used to indicate this?
Cost benefit analysis
Diagram representing various combinations of goods and/or services that an economy can produce when all productive resources are maximized
Production Possibilities Frontier
What does GDP stand for? And what does it mean?
Gross Domestic Product
Dollar value of all goods/services produced within a country in a year
DOUBLE JEOPARDY!! (1000 PTS)
As a consumer, what role do you play in the circular flow of economic activity? (2 part answer)
Provide labor for income in the factor market
Spend money on goods/services in the product market
What is the term that means consumers and privately-owned businesses, rather than the government make the majority of the WHAT, HOW, AND FOR WHOM decisions?
Free enterprise economy