Basics of Economics
Scarcity is the result of
WHAT IS: Scarcity: Limited resources to satisfy unlimited wants and needs.
An objects usefulness to us is it.........
WHAT IS: Utility
Why is the line curved?
WHAT IS: increase in opportunity cost
A Comparative Advantage.....................
WHAT IS: Producing something at a lower opportunity cost
What are the Factors of Production?
WHAT IS: Labor, Land & Capital
A good is a __________________ people produce.
Examples are .....................
ex: apples, iPhone, Cars etc.....
Trade-Offs
Choosing one thing means..........
WHAT IS: Giving up another
What is the difference in Point A vs Point B?
WHAT IS: Point A = underutilized use of resources, Point B = efficient use of resources
What are the Three Economic questions?
WHAT IS:
Prices fall when demand ........ supply
WHAT IS: is bellow
Mr. Ralston's example of toilet paper during covid is an example of what cause of Scarcity.
WHAT IT: A Rapid increase in demand
An opportunity cost is the ________________ alternative
WHAT IS: Best
What is the opportunity cost to move from C to D in Pens and Ink Bottles?
Option Pens Ink Bottles
A 0 50
B 10 45
C 20 35
D 30 20
E 40 0
WHAT IT: C to D: Pens 10 gained, Ink Bottles 15 lost
What are three of the six roles of Government?
WHAT IS:
Prices rise when demand ........ supply
WHAT IS: exceeds
The Monsters Inc. example of the developing new technology for screams or switching to laughter is an example of what?
WHAT IS: Dealing with Scarcity
If the Marginal Cost is more than the Marginal Benefit should you do it?
WHAT IS: NO
If an improvement in tech affected both Guns and Butter what would the movement in the PPC look like?
WHAT IS: an even shift outward.
What would allow a country to consume beyond its PPC?
WHAT IS: Specialization + Trade
The invisible Hand helps markets work.................
WHAT IS: efficiently
How does a need differ from a want?
WHAT IS: Needs are required for survival
Ray is trying to decide if he wants to study architecture or business. He can attend the same school for both programs, meaning his tuition and living costs are the same. He wants to pursue a bachelor's degree in his chosen area of study so the overall cost of his degree doesn't change. Ray finds his expected earnings in both fields to calculate the opportunity cost. He finds that a career with a bachelor's degree in business earns a salary of $50,000. Comparatively, a bachelor's degree in architecture earns an average of $55,000 per year.
This means that if Ray studies business, there's an opportunity cost of $5,000 per year for the rest of his working life.
What would explain the uneven shift from Point D to Point E?
WHAT IS: A change in tech. that allows for more butter production but not more Gun production.
The difference between Communism and socialism is the destructions of ...........................
WHAT IS: Private Property
What do the Households and Business provide and receive?
WHAT IS:
Households: Provide labor, receive income & goods/services.
Businesses: Provide goods/services, receive revenue