7 Principles of Thinking
motivates individual to take action
What is an Incentive?
Exchanging one good over for another good
What is barter?
heavily related to market economic system
What is capitalism?
study of people with their resources and financial assets
What is economics?
Russia makes 350 gallons of oil and Mexico 55.67 gallons of oil
What is the absolute advantage?
understanding the mystery of human behavior
rational-behavior model
Social Security and Medicare
What is transfer payments?
everyone who wants a job
What is full employment?
land/labor/capital
What are the factors of production?
Tariff of 50% on a solar panel of 300 dollars.
What is 450?
Nona has gotten her license and is ready to purchase the brand new Tesla Cybertruck. However, the wait time on them is 6 ½ months minimum. Nona decides to purchase a Prius instead of waiting that long.
What is Scarcity forces tradeoff?
Russia is extremely good at making oil, so much that they can trade with Canada in exchange. Canada is extremally good at making lumber which means they can trade with South Korea. And South Korea is really good at making computers and phones.
What are specializations?
China and North Korea are considered
What is modern command economy?
Output over Input
What is the productivity formula?
Tariff of 54% on Florida oranges (19.32) and 12% on Mexican avocados (4.40)
What is 34.68?
Jacob wants to get 100% on the Econ Final to raise his grade from an 80% to a 90%, but in order to do so he must study and prepare for it, putting aside any distractions. He is so dedicated to earning an A that he put time in studying than sleeping. He is also not having breakfast or going to work.
What is thinking at the margin?
Depending on farmers, butchers, delivery drivers, and restaurants for our breakfast
What is economic interdependence?
The five roles for a limited government
What is:
Protect Property Rights
Promote General Welfare
Preserving Competition
Protect consumers/workers/environment
Stabilize Economy
Japan has a good economy with very few resources which is the opposite for Nigeria. Nigeria has many resources but a poor economy.
What is correlation?
Comparative advantage in IPhones:
Mexico: 12,332 computers vs 33222 IPhones
United States: 33221 computers vs 3211 IPhones
Vietnam: 45321 IPhones vs 43221 Computers
What is Mexico?
With the opening of San Jose supershop, the business owner is left in charge of obtaining all shelf products, but during construction, never checked that the security cameras were installed and the flammable wood used for the shop’s interior. Because of this, the supershop cannot open for six months.
What is market and future consequence?
Canda, the US, and Mexico wanted to expand trade with one another back in the 1990s. SO, they all came to a decision to do exactly that. It was in 1993 when it happened.
What is NAFTA?
What is mixed economic system?
Calculating healthcare and education costs using a graph and the
What is the production possibilities frontier?
Tariff of 55% on CA lemon(32.12), 32.2% on GA avocado(83.21), and 45.6% on Russian vodka (322.12)
What is 628.80?