Guideposts of Economic Thinking
Give one definition for economics
- The study of human behavior
- How we meet our unlimited wants with our limited resources
- The study of decision making
Define scarcity.
The condition that exists because our resources are limited, but our wants are unlimited.
What does the law of demand state?
As price increases, quantity demanded decreases.
What does a production possibilities curve graph?
The maximum output of two goods given limited resources.
Which singer and which football player just got engaged?
Taylor Swift and Travis Kelce
Where are rational choices made?
At the margin
What is one of the three questions that must be answered because of scarcity?
1.) What will we make?
2.) Who will make it?
3.) Who will it be made for?
What does the law of supply state?
As price increases, quantity supplied will increase.
What does a point on the curve represent?
Efficiency
How many high schools has Mr. Hoyt taught at?
What is one thing that economics is not about?
- Making money
- Business
- Greed
The concept of trade offs is best described as:
Choosing one thing over another, leading to an opportunity cost.
What does equilibrium price represent?
The most profitable price to sell at.
What does a point inside of the curve represent?
Inefficiency
What is the Capitol of Scotland?
Edinburgh
Voluntary trade.
How can you visually represent scarcity?
By using the laws of supply and demand to graph a curve.
If demand increases, what happens to quantity and price?
They both increase
Identify the four factors of production and give an example of each.
(Mr. Hoyt will decide)
How many different classes is Mr. Hoyt teaching this semester?
4
What makes an economic theory a good one?
Whether or not it can predict future outcomes.
Define opportunity cost and give an example of opportunity cost in your everyday life
Opportunity cost - the cost of making one choice over another one.
(Mr. Hoyt will determine)
What does the equilibrium point represent?
Where supply (curve) and demand (curve) meet.
What would you need in order to reach a point outside of the curve?
More land, labor, capital, or entreprenurship.
What country is the single largest exporter of oil and natural gas?
The United States of America