PPC
Definitions
Terms of Trade
Misc
100
Draw a Production Possibilities Curve
100
Define Scarcity
Unlimited wants but limited resources
100
who has the absolute advantage of wheat?
Mexico
100
Difference in trade off and opportunity cost.
trade off- everything you give up
opportunity cost- cost of the next best alternative
200
Point C on the graph is...
Inefficient
200
Define Economics
The study of scarcity
200
Who has the comparative advantage in rice?
Vietnam
200
Differences in Comparative and Absolute advantage.
Comparative-when someone can produce something at a lower opportunity cost
Absolute-when someone is the best at doing something
300
Point E is...
Unattainable
300
Define trade off
What you give up when you make a choice.
300
Who will specialize in wheat ore?
Australia
300
Differences in Marginal Cost and Marginal Benefit
MB- what you receive to do one more thing
MC-what you lose to do one more thing
400
If there was an increase in technology how would this affect the curve?
It would shift the curve outward
400
Define Production Possibilities Curve
Illustrates the trade offs facing an economy that produces only two goods.
400
If China's iron ore production is doubled who should specialize in iron ore?
Australia
400
Differences in Microeconomics and Macroeconomics
Micro-The study of individual choices made by individuals, households, or firms that make up the economy as a whole.
Macro-The study of overall ups and downs in the economy
500
If the cost of college decreased how would this affect the curve?
It would shift outward
500
List the three economic questions
What to produce?
How to produce?
For whom?
500
If China's iron ore production is increased by 150% who will specialize in iron ore?
Australia
500
Differences of positive and normative statements
Positive-Fact based
Normative-Opinion based