Show:
Unit 1: Intro to Economics
Unit 1: Intro to Economics
Unit 2: Supply
Unit 2: Demand
Unit 3:Measuring the Economy (GDP)
100
The four factors of production
What is Land, Labor, Capital and Entrepreneurship
100
1) Resources are used to produce one or both of only two goods 2) the quantities of the resources do not change 3) technology and production techniques do not change, and 4) resources are used in a technically efficient way.
What are the four basic assumptions of the Production Possibility curve
100
If production costs of milk increase the supply curve:
Shifts Left, because farmers will produce less milk if it is more expensive to produce
100
If the price of a product increases, What happens to quantity?
The quantity supplied increases (there is no shift)
100
Consumption + Gross Investment + Government Spending + Net Exports
What is GDP?
200
The amount of product lost when increasing the production of another (competing) product
What is opportunity cost
200
A country can produce a product at a lower cost than other countries
What is comparative advantage
200
If more farmers are producing milk the supply curve will:
Shift right
200
1) Taste & preferences 2) Number of consumers 3) Price of related goods 4) Income 5) Consumer Expectations
What are Demand Shifters?
200
The purchase of a new house built in the current year
What is an investment?
300
The maximum combinations of products available with fixed resources and technology
What is The production possibility curve
300
product >small opportunity cost< large opp. cost
What is terms of trade
300
If technology for milking cows increases and becomes more efficient, then the supply curve will:
shift right, because if it cost less to produce farmers will increase production.
300
There is an inverse relationship between price and quantity demanded
What is the law of demand?
300
The purchase of a 2008 ford explorer, in the year 2010
What is not included in GDP?
400
When a country is better at producing a single product
What is absolute advantage
400
Where the main economic decisions (such as allocating scarce resources like labor, capital, soil and natural resources) are taken by a central body; which is usually the government.
What is command economy
400
If taxes on cows increase then the supply curve will:
shift left, because it is more expensive for farmers to produce milk, therefore production will decrease
400
If the price of toilet paper increases demand will stay the same
What is an example of inelastic demand?
400
GDP (consumption+gross investment+gov't spending+ net exports) + net income from assets abroad- payment outflow to foreign assets
What is GNP?
500
Wrote the wealth of nations, the "bible of capitalism." He states that free-market economies (capitalist ones) are the most productive and beneficial to their societies; supporting an economic system based on individual self-interest led by an “invisible hand,” which would achieve the greatest good for all.
Who is Adam Smith?
500
The theory of a free market economy with no or little government interactions (a market for the people by the people)
What is laissez-faire
500
The law of supply states that the relationship between price and quantity supplied is _____
direct
500
The longer someone consumes a product the less desire there is for that product
What is diminishing marginal utility?
500
If Econland produced 25 shoes in 2008 for $25 each and 35 shoes in 2009 for $40. The Real GDP for 2009 is?
What is 35x25=875?