Terms
More Terms
Circular Flow
S & D
PPB/PPC
100
A good or service that is essential
Need
100
A purchase that is an activity rather than something tangible
Service
100
What is the missing market b/w Households & Businesses?
Product Market
100
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Identify the Red line and the blue line
Red = Demand
Blue = Supply
100
What is the name of the arced line
PPB = Production Possibilities Boundary
(or PPC = Production Possibilities Curve)
200
When a choice is made, what do Economists call the option that was given up
Trade-off (or Opportunity Cost)
200
What is a cost that cannot be recovered?
Sunk Cost
200
What is another name for the Resource Market?
Factor Market
200
What is a synonymous term for Equilibrium Price?
Market Price
200
What does the arced line reveal
The maximum level of production (of apples & oranges)
300
What is the fundamental Economic Problem?
Scarcity of Resources
300
Name the 4 essential economic questions
What to produce
How to Produce
Who should produce
For Whom to produce
300
What is exchanged b/w Firms and the Government?
Firms provide Taxes (corporate taxes)
Government provides Public Services
300
Identify the Equilibrium Price & Quantity in the chart
Equilibrium Price is $3; Equilibrium Quantity = 70
300
What is the area to the left of the arced line?
Attainable Production / Possible production
400
Provide 2 examples of a Fixed costs and 2 examples of Variable Cost for Little Pigs
Fixed: Rent; insurance;
Variable: Labor; Utilities; Food; Water
400
Name the 4 Factors of production and give examples from Little Pigs
Land-
Labor -
Capital Goods-
Entrepreneurship-
400
What is exchanged b/w the Households and Factor Market?
Purple arrow = Factors of Production
Green Arrow = Income
400
State the Law of Demand
As price inceases; QD decreases
(As price decreases; QD Increases)
400
What is the tradeoff of going from D to C
Lose 1 Orange (gain 3 apples)
500
What does it mean to "Think on the Margin"
Consider a little more or a little less
500
What is Adam Smith's Theory that the economy will move in a positive direction without government rules?
The Invisible Hand Theory
500
What is exchanged b/w the Firms and the Product Market?
Revenue (green arrow)
G&S (Purple Arrow)
500
State the law of supply
As price increases; QS increases
(As price decreases; QS decreases)
500
What is the Tradeoff of going from A to C?
Lose 3 Apples (gain 2 oranges)