In terms of Economics, these are the things that are required for survival.
Needs
100
In terms of Economics, these are the things that we would like to have.
Wants
100
This occurs when we do not have the resources to produce all of the things that we want to produce.
Scarcity
100
These are representations of the real world that help economists explain how the economy works.
Economic Models
100
You are performing a _____________ when you compare the good and bad outcomes of an economic decision.
Cost-Benefit Analysis
200
This is the cost of the next best thing or use of your time/money; or when you give up the benefits of one choice because you chose to do something else.
Opportunity Cost
200
In the production of candy canes, the machines used to make the candy canes represent which of the 3 factors of production?
Capital (goods)
200
True or False. Stocks, bonds, and money are the 3 types of productive resources.
False. Land (natural resources), Labor (human), and Capital (goods) are the 3 productive resources.
200
Which type of economy does the U.S. have?
Mixed
200
The ________________ is the fact that our wants and needs are unlimited, but our resources are scarce, or limited.
Economic Problem
300
True or False. The 3 economic questions are What to Produce? How to Produce? and For Whom to Produce?
True.
300
Paying rent and certain taxes every month are what kind of costs?
Fixed Costs
300
The cost to produce one extra unit is referred to as what kind of cost?
Marginal
300
A man decides to become a doctor because his father was one also. This resembles which type of economy?
Traditional.
300
When people compare prices before making a purchase, they are gathering information about which aspect of the purchase?
Opportunity cost
400
A Market economy is said to be based on this, when private citizens own most of the means of production.
Capitalism.
400
True or False. The opportunity cost of building a steel bridge is the value of the products that could have otherwise been made with that steel.
True
400
It costs the U.S. $250 to produce one big screen TV. It costs Japan $125 to produce that same TV. What is Japan demonstrating in this example?
Comparative Advantage
400
The U.S. exports $10 Trillion worth of goods while it imports $15 Trillion worth of goods. Is the U.S. operating at a Trade Surplus or a Trade Deficit?
Trade Deficit.
400
China exports $18 Trillion worth of goods and imports $9 Trillion worth of goods. Is China operating on a Trade Surplus or a Trade Deficit?
Trade Surplus
500
Name 1 reason why countries trade with each other.
To get goods that they cannot produce
Comparative Advantage
Voluntary Exchange
500
True or False. Scarcity occurs when we do not know how to produce.
False. Scarcity occurs when we do not have enough resources to produce.
500
Give 2 examples of Capital Goods.
Tools and Manufacturing Equipment
(grills, deep fryer, oven, wrecker, hoses, conveyor belt)
500
True or False. A stockholder purchasing shares in a publicly traded company is an example of investing in capital goods.
False. Buying things that help you produce (tools, etc) is investing in capital goods.