Supply
The different quantities of goods and services that firms are willing and able to produce at various price levels
What is Supply?
The different quantities of goods consumers are willing and able to buy at different prices
What is Demand?
Land
What is “All natural resources that are used to produce goods and services. Anything that comes from mother nature.”?
Trade-offs
What are “the alternatives that we give up whenever we choose one course of action over others”?
The PPC Curve
What is “the model used to illustrate tradeoffs and opportunity costs when producing two goods”?
The Law of Supply
What is “As price level increases, the quantity supplied increases”
The Law of Demand
What is “As price falls, quantity demand rises. As prices rise, quantity demanded falls”
Labor
What is “Effort a person devotes to a task for which that person is paid.”?
Opportunity Cost
What is “The most desirable alternative given up as a result of a decision”?
An Efficient Economy
What is “Using All Resources Efficiently”?
The Shifters of the Supply Curve
What are Changes in Input Prices, Changes in Prices of related goods and services, Changes in Technology, Changes in Expectations, Changes in the Number of Producers?
The Shifters of the Demand Curve
What are “Changes in prices of related goods and services, Changes in income, Changes in tastes, Changes in expectations, Changes in the number of consumers”?
Capital
What are “the assets—physical tools, plants, and equipment—that allow for increased work productivity”?
What is “adding variety/choice, allowing for competition”?
An Inefficient Economy
What is “Not using all resources available”
An Auto Producer goes Bankrupt and its operations. Does supply shift? If so which direction and why?
What is “shifting left due to the change in the number of producers”?
The Surgeon General of the United States warns that eating beef is hazardous to your health. Does demand shift? If so which direction and what is the reason why?
What is “Shifts left due to change in tastes”
Entrepreneurship
What are “ambitious leaders that combine factors of production to create goods and services.”?
You are beginning to invest in the stock market. You choose a lower risk investment as your first investment. The opportunity cost?
What is “Gaining lower rewards”?
The direction on the PPC model of economic growth with increase in technology and resources
There are too many dairy farms producing milk. To protect the family farm industry, prices are doubled by the government. What Changes First? What happens to supply?
What is “The price changes first and the quantity supplied increases”?
Apartments on Manhattan Island, NY: The city government freezes prices at the 1955 levels for the next thirty years. What Changes First? What Happens to Demand?
What is “Price Level Changes First, Quantity Demanded Increases”
The Two Types of Capital and What They Mean
What is “Physical Capital and Human Capital“
What is “A human-made resource that is used
to create other goods and services” -physical
What is “Any skills or knowledge gained by a
worker through education and experience”- human
The Opportunity Cost of Attending College
What is “the sum of your college expenses plus the money you could have earned had you chosen not to work”?
Reasons a Government Might Implement a Policy to Increase the PPC
What is “wartime, industrial revolution”?