Terms 1 Factors of Production PPC Marginal Analysis Terms 2 10 20 30 40 50

Terms 1 Factors of Production PPC Marginal

Analysis Terms 2

10 10 10 10 10

20 20 20 20 20

30 30 30 30 30

40 40 40 40 40

50 50 50 50 50

Question 1 - 10

• Define scarcity

Answer 1 – 10

• Unlimited wants, limited resources.

Question 1 - 20

• Define opportunity cost.

Answer 1 – 20

• Next best alternative.

Question 1 - 30

• Define trade-off.

Answer 1 – 30

• Everything you give up when you make a choice.

Question 1 - 40

• Define Normative Statements

Answer 1 – 40

• Opinions/value judgment.

Question 1 - 50

• Define Positive Statements.

Answer 1 – 50

• Based on fact only.

Question 2 - 10

• Dirt

Answer 2 – 10

• Land

Question 2 - 20

• A student taking automotive.

Answer 2 – 20

• Human Capital

Question 2 - 30

• Flipping hamburgers at MacDonald’s.

Answer 2 – 30

• Labor

Question 2 - 40

• A student taking a course in their major at college.

Answer 2 – 40

• Human Capital

Question 2 - 50

• Bill Gates

Answer 2 – 50

• Entrepreneuer

Question 3 - 10

• How do you show economic growth on a PPC?

Answer 3 – 10

• Rightward shift.

Question 3 - 20

• What causes the curve to shift? (3 things)

Answer 3 – 20

• Change in resources, change in technology, change in trade.

Question 3 - 30

• Draw a PPC. Put laptops on the Y-Axis and asparagus on the X-Axis.

• Show me a productively efficient point on the PPC.

• Show me where the allocative efficient point on the graph would be.

Answer 3 – 30

• Show Mr. Martinez your answer so he can talk about it.

Question 3 - 40

• Draw a PPC. Label where Unemployment would be, as well as efficiency and unattainable.

Answer 3 – 40

• Show Mr. Martinez your answer so he can talk about it.

Question 3 - 50

• Draw a PPC. Put Cell Phones on the Y-Axis and put shoes on the X-Axis.

• Show the shift of what would happen if Nike closed its sweatshops.

Answer 3 – 50

• Show Mr. Martinez your answer so he can talk about it.

Question 4 - 10

• What is marginal analysis?

Answer 4 – 10

• We will keep doing something as long as the benefit outweighs the cost.

Question 4 - 20

• Mr. Pondy goes bowling 3 times in one week. His Marginal Analysis is as follows.

• 1st time his benefit was $10, cost $5• 2nd time his benefit was $6, cost $5• 3rd time his benefit was $4, cost $5.

• Was the 3rd time worth it by itself?

Answer 4 – 20

• No

Question 4 - 30

• Mr. Bennett goes golfing 3 times in one week. His cost benefit analysis is as follows.

• First time – Benefit was $30, Cost was $20• Second time – Benefit was $25, Cost was $20• Third time – Benefit was $20, Cost was $20.

• All in all, was it worth it?

Answer 4 – 30

• Yes

Question 4 - 40

• Define marginal benefit. Is it necessarily money?

Answer 4 – 40

• The additional benefit from consuming a good. No.

Question 4 - 50

• Define Marginal Cost.

Answer 4 – 50

• The cost of going somewhere repeatedly.

Question 5 - 10

• Marginal =

Answer 5 – 10

• Additional

Question 5 - 20

• Allocate =

Answer 5 – 20

Distribute

Question 5 - 30

• Utility =

Answer 5 – 30

• Satisfaction

Question 5 - 40

• Define Implicit Cost.

Answer 5 – 40

• Forgone time and forgone income when making a decision.

Question 5 - 50

• Define explicit costs.

Answer 5 – 50

• Out of pocket expenses.