Factors of Production
Natural resources used to produce goods and services.
What is land?
The cost of the next best alternative when a choice is made.
Opportunity cost
The ways an economy can efficiently use its resources.
What is the production possibilities curve?
North Korea's economy.
What is command economy?
This encourages entrepreneurs to find new ways of producing things.
What is competition?
Machines used to produce goods and services.
What is physical capital?
The opportunity cost when you choose to study rather than watch TV.
The number of products shown on a PPF graph.
What is two?
What is mixed economy?
Land, labor, and capital.
What are the factors of production?
When a person learns a skill it improves this.
What is human capital?
SLIDE CLUE
What is making a salad at home?
A point to the right (outside) of the curve shows this kind of outcome.
What is impossible outcome?
An economy where companies have no regulations and trade freely.
What is market economy?
DAILY DOUBLE
What is shortage?
This factor of production is when a person sells their time to a firm.
What is labor?
Someone who enjoys eating fast food thinks the marginal [_______] of eating out is greater than the marginal cost.
What is benefit?
A point to the left (under) the curve shows this type of outcome.
What is inefficient outcome?
An economy where the government answers the basic economic questions.
What is command economy?
Economic/political system where both government and individuals own property but the government tries to evenly distribute wealth.
What is socialism?
A person who combines resources to create new products.
What is entrepreneur?
This law explains why trade-offs (or the opportunity cost) can become progressively more expensive.
What is the law of increasing costs?
The reason the PPF isn't a straight line.
What is the law of increasing costs?
(Also: Products use different kinds/amounts of resources.)
An economy where kids replace their parents in their jobs.
What is traditional economy?
The basic problem of economics.
What is scarcity?