Basic Economics
the study of the choices individuals, businesses and governments make under the condition of scarcity
economics
this factor of production includes all natural resources used in the production process
land
the price of a good multiplied by the quantity sold
price x quantity = ?
revenue
Anywhere where buyers and sellers come together in an exchange
market
the study of how people make decisions and how those decisions affect others in the economy
microeconomics
this term refers to the idea that while we could seemingly want an unlimited number of things, our usable resources are limited
scarcity
this factor of production purchases the other 3 factors and bears the risk of economic failure
entrepreneurship
the money left over from selling a good or service after the cost of buying productive resources have been paid
Total Revenue - Total Cost = ?
profit
In this market, consumers demand goods from businesses, who supply them in exchange for money.
product market
the study of the economy as a whole
macroeconomics
When Mr. Schauer became a teacher, he gave up the chance to become a Professional Eminem Impersonator. What would you call the job that he gave up in response to Schauer's career choice?
opportunity cost
Mr. Schauer leaves his job as a teacher after peaking in his craft, and decides to become a farmer. He purchases a new tractor to help him. Which factor of production does the tractor represent? (hint: need 2 words)
physical capital
a measure of the amount of output produced by a given amount of inputs
efficiency
In this market, businesses demand the factors of production, which consumers supply to them in exchange for wages.
factor/resource market
You go to Kwik Trip and buy a chicken sandwich and a sweet tea (Micro or Macro?)
Micro
economists assume we always make our choices in service of this
(rational) self-interest
Mr. Schauer wants to learn French so that he can rap in multiple languages. Which factor of production does his learning a new language represent? (hint: need 2 words)
human capital
Mr. Schauer sells his rap demo CD for $10. He sells 10 total copies (5 to other staff members, 4 to students who felt bad for him, and 1 to his mom). What is Mr. Schauer's total revenue?
$100
Mr. Schauer purchases a brick from Eminem's childhood home (for charity!!!). Which market is Mr. Schauer operating within? (Product or Resource)
Product
Members of Congress study the national unemployment rate in order to inform new economic legislation (Micro or Macro?)
Macro
a speeding ticket and Mr. Schauer's old school's policy of "Golla Dollas" rewarding students for good behavior are both examples of what?
incentives
True or false: money is a factor of production.
False: "financial capital" is separate from our 4 factors of production.
Mr. Schauer sells his rap demo CD for $10. He sells 10 total copies (5 to other staff members, 4 to students who felt bad for him, and 1 to his mom). However, across the studio time, production software, and hiring a hype man to stand behind him and dab at shows, Mr. Schauer's costs total $6,700. Is he making a profit, and is he acting "rationally" in the economic sense? (2 part answer)
No; No
Resource
Amazon sets up a new payment plan for users, which operates with purchases coming from vendors in all 50 states (Micro or Macro?)
Micro