Quiz 1 Flashcards
1
Q
Tradeoffs
A
- all possible things you could do instead
2
Q
Opportunity Cost
A
- best alternative/ second choice
3
Q
Thinking at the Margin
A
- deciding to do more or less of something
4
Q
Underutilization
A
- not all resources used
5
Q
Growth/ How to achieve Growth
A
- more resources/ more technology
6
Q
Efficient
A
- all resources used
7
Q
Law of Increasing Cost
A
- gets harder to make things; when you try to increase production
8
Q
Frontier/ PPF
A
- shows maximum output
9
Q
Purpose of Production Possibilities Graph
A
- demonstrates tradeoffs
10
Q
Guns vs. Butter
A
- fundamental tradeoff between military and consumer goods
11
Q
Economics
A
- the study of how people seek to satisfy their needs and wants by making choices
12
Q
Scarcity
A
- occurs when there are limited quantities of resources to meet unlimited needs or desires
13
Q
Shorages
A
- occur when producers will not or cannot offer goods or services at current prices
14
Q
3 Factors of Production
A
- land
- labor
- capital
15
Q
Land
A
- all natural resources that are used to produce goods and services
