Graphs and Models
What does a simple economic model show about scarcity?
It shows that resources are limited and choices must be made.
Why can’t producers make unlimited goods?
Because resources like labor, materials, and time are limited
What is the term for a tangible object that we use to satisfy our wants and needs?
Goods
Gabby is going grocery shopping and remembers that she is out of water bottles. Getting this water is an example of what?
Need
What is the number one social media platform in the world right now?
TikTok
How does a production possibilities curve (PPC) show the effects of limited resources?
It shows the maximum combinations of goods that can be produced with limited resources.
How do limited resources force producers to make choices about what goods to create?
They must decide which goods use resources most effectively.
What is the term that is used to describe work that is performed for someone else?
Service
John has free time and he decides that he wants to purchase Netflix so he can watch a new movie. Getting Netflix is an example of what?
Want
What number is one of the stranger things character named after?
Eleven
Why does a PPC curve illustrate opportunity cost when shifting production from one good to another?
Because increasing production of one good requires giving up some of the other.
Why must producers consider opportunity cost when deciding how to use their resources?
Because choosing one option means giving up another potentially valuable one.
What type of goods would computers and cars be considered as?
Durable Good
What is the term that describes the fact that we do not have enough resources to satisfy everyone’s needs and wants?
Scarcity
Who was the 44th President of the United States?
Barack Obama
How can a bar graph help show the difference between spending on needs versus wants?
It compares amounts visually, making it easy to see which category gets more resources.
How does consumer demand for needs versus wants influence production decisions?
Producers make more of what consumers value most, especially essential goods.
What type of goods would food and cosmetics be considered as?
Non-durable Good
Alex needs to drive from Greensboro to Myrtle Beach for a work event. She already has a car but wants to rent a new one for traveling purposes. Will the car that she rents be considered a want or a need?
want
What is the term that measures the total value of all goods and services a country produces in a year, and it often rises when inflation causes prices to increase?
GDP
How can different economic models lead to different conclusions about how societies should issue scarce resources?
Models emphasize different factors (like efficiency, equity, or growth), so they can suggest different priorities for resource use.
How does choosing to produce more luxury goods instead of essential goods create opportunity costs for a business?
The business gives up the chance to meet essential consumer needs, which could reduce customer trust or steady demand, showing how shifting production affects long‑term benefits
What are the 4 resources necessary to produce goods and services?
Natural resources, Labor (Human resources), Capital/ Capital goods, and Entrepreneurs
What is the percentage strategy for budgeting needs and wants?
50/30/20 rule
What is the law called that states when the price of a product goes up, consumers buy less of it — and when the price goes down, consumers buy more?
Law of demand