Basics
Decision Making
Circular Flow
PPCs
Economics Systems
100
What are the four productive resources (AKA the factors of production)?
Capital
Land
Labor
Entrepreneurship
100
What does TINSTAAFL mean?
There is no such thing as a free lunch.
Every decision has a cost.
Costs are not only monetary.
100
The circular flow of production mainly shows what concept?
Interdependence of businesses and households
100
In the PPC below, the blue line represents what?
Scarcity
100
Which economic system is mainly theoretical and probably never existed?
Traditional economic system
200
What is the fundamental problem of economics that forces everyone to make decisions?
Scarcity
Unlimited wants and limited resources
200
What's the difference between trade-offs and opportunity cost?
OC- the next best option given up. You only have one.
TO- everything considered but not chosen. Will have multiple.
200
What do households sell to make money?
Factors of production
CELL
200
In the PPC below, which point is attainable but undesirable?
A
200
Who answers the 3 basic economic questions in a free market economy?
Private individuals.
Buyers and Sellers
300
Why does an entrepreneur start a business?
Profit motive
300
Describe marginal cost and marginal benefit.
The ADDITIONAL cost or gain in utility when a decision is made.
300
In the circular flow of production where do Households make their money?
The Factor Market
300
In the PPC below, which point(s) are most efficient & productive?
B, D, & C
300
What are two ways an economic system can increase efficiency and productivity?
Specialization and division of labor
400
Give an example of each factor of production (CELL)
Natural resources
Tools and Machinery
Business owner
Human capital
400
The next best option given up when you make a decision. "What you gave up to get what you got."
Opportunity cost
400
In the circular flow of production where do Businesses make their money?
Product Market
400
In the PPC below, what can happen to allow this economy to reach X?
- Trade
- Increased population/immigration
- Education
- Find more CELL
400
Mixed economies like the US provide some economic safety nets such as unemployment insurance to meet which economic and social goal?
Economic security
500
What are the three types of capital?
Human
Physical
Financial
500
Mr. Williams has to grade economics FRQs but he also wants to watch the Braves play. For every 3 FRQs graded he misses a half inning of the baseball game. If Mr. Williams has 27 FRQs to grade how much of the game can he watch?
About half of the game. 27/3=9. He'll miss about 4.5 innings of a 9 inning game.
Remember we only decide to do something when MB > MC.
500
Why does the government pay subsidies/welfare to both businesses and households?
To encourage specific economic activity. Spending, production. Economic growth.
500
In the PPC below, what has the greatest opportunity cost: moving from B to D OR moving from D to C?
D to C. More gun are given up to produce butter moving from D to C.
500
Give an example of how a government can encourage positive externalities AND discourage negative externalities. (500 points for both)
Education, Infrastructure, Parks
Laws/fines/taxes restricting pollution