Unit 1 Test Flashcards
Point inside the curve of opportunity cost curb represent what?
A production possibility but under efficient use of resources
Went outside the curve represent what?
Not possible with the current resources or technology
New technology or resources that impact capital goods do what to the curve?
Move the whole curve outward
New technology resources that impact only consumer goods do what to the curb?
It curves out but starts at the same place
What are the four assumptions of production possibilities?
Two products, fixed resources, six technology, full efficiency
What are the four types of resources?
Land, labor, capital, entrepreneurship
What is the utility?
Usefulness
What is marginal utility?
Additional uses
Marginal cost equals what?
Additional cost
Marginal benefit equals what?
Additional benefits
What are the five economic assumptions
Resources are scarce, every choice has a trade off, people act out of self interest, people make comparisons to make choices, situations are explained in graphs
What is scarcity?
A resource that is wanted but limited
What is macro economics?
It’s the economy as a whole and example is government spending
What is Matt microeconomics?
Smaller units of economics and example is an individual firm
What is the normative statement?
In opinion
What is a positive statement?
A fact (can be untrue)
What is allocative efficiency?
The producer produces products desired by society
What is productive efficiency?
The producer produces products in the least costly way
What is land?
Natural resources
What is labor?
People/the workforce
What is capital?
Tools, equipment, factories/things that are used in production
What is entrepreneurship?
Bringing new products to the market
What are capital goods?
They are used to make consumer goods/not available to the public
What are consumer goods?
Things every day people can buy
