Vocabulary
How is Economics Defined?
What is the study of peoples choices.
What is an Incentive?
What is a reward that encourages behaviors.
The Factors of Production are bought and sold in which market?
What is the Factor Market
What does PPC Stand for?
What is Production Possibilities Curve
In this type of economy, the consumers have the choice to make decisions and have a high level of economic freedom?
What is Market Economy.
Why is scarcity so important in Economics?
What is resources are always scarce but there are unlimited wants and needs.
What is a Disincentive?
What is a punishment that discourages behavior
The Factors of Production are then then made into something and sold to the consumer to be bought; which market does this transaction happen?
What is the Product Market
Using the PPC on the Board, what does point E represent?
What is an inefficient use of resources, it's possible but not using resources properly.
In this type of economy, the government has control of the factors of production and make economic decisions.
What is Command Economy
What is a trade-off?
What is an alternative/s that must be given up when one choice is made over another.
What is 1 Positive and 1 Negative of a Command Economy?
Positives: Low Unemployment, Job Security, Less Inequality, etc.
Negatives: No incentive to work hard, lack of innovation, no freedom, quality of goods poor, etc.
What are the four factors of production?
What are land, labor, capital and entrepreneurship
Using the PPC on the board, what does point F represent?
What is an impossibility, there are not enough resources to produce at this point.
In this type of economy, there is a mixture of both government and individual decision making in the economy.
What is a Mixed Economy.
What does it mean to think like an economist?
What is considering the costs, benefits, and trade-offs of a decision.
Positives: Large Individual Freedom, Government can make sure the economy is moving forward, flexible in times of need
Negative: Government Oversight could prevent innovation, Large Government, Government can pull funding
Think about a farm; what would be 1 example of each of the factors of production on a farm?
Land: Where the farm was built, the crops they produce, any other natural resources.
Labor: Farm Workers
Capital: Tractors, Combines, Barns, any animals, etc. to make money
Entrepreneurship: The Farmer
What is the trade-off of producing at Point D?
What is either producing 250 of Product A and 150 of Product B or Producing 0 of Product A and 300 of Product B.
In a Command Economy, answer the following question:
What goods are produced? How are they produced? And Who Consumes the Goods
What: The Government
How: The Government Provides Jobs for the people and the Factors of Production
Who: The people consume goods equally
What is the "Invisible Hand?"
What is the metaphor for the unseen forces that move a free market economy. Or how consumers self regulate themselves because of their need to make money.
What is Profit, Produces make what consumers want, prices change based on what consumers are willing to pay, competition fosters innovation.
Sandy works at a company as an architect; two times a month she is paid for her service and skills on the job. In which market does this occur?
What is Factor Market; because she is being paid for her Labor (Factors of Production).
What is the Opportunity Cost of Producing at Point C?
What is 50 of Product A.
What goods are produced? How are they produced? Who consumes them?
What: Determined by the businesses and consumers
How: Consumers Hold the Factors of Production; Businesses turn them into Goods and Services
Who: Households consume Goods and Services