WEEK 2

Question 1

The value of the best alternative is forgone when an item or activity is chosen.​

Answer 1

Opportunity Cost​​

Question 2

4 Opportunity Cost …

Answer 2

Is Subjective.
Requires Time and Information.
Constraints Time.
Varies with Circumstances.

Question 3

A cost that has already been incurred, cannot be recovered, and thus is irrelevant for present and future economic decisions.​

Answer 3

Sunk Cost ​​

Question 4

The individual, firm, region, or country with the lowest opportunity cost of producing a particular good should specialize in that good.​

Answer 4

Law of Comparative Advantage​​

Question 5

The ability to make something using fewer resources than other producers use

Answer 5

Absolute Advantage​​

Question 6

The ability to make something at a lower opportunity cost than other producers face

Answer 6

Comparative Advantage​​

Question 7

The direct exchange of one product for another without using money​

Answer 7

Barter​​

Question 8

Breaking down the production of a good into separate tasks.​

Answer 8

Division of Labor​​

Question 9

Focusing work effort a particular product or a single task.​

Answer 9

Specialization of Labor​​

Question 10

The focus on how individuals choose to use their scarce resources to satisfy their unlimited wants or, more specifically, how they specialize based on comparative advantage.

Answer 10

The Economy’s Production Possibilities​​

Question 11

A curve showing alternative combinations of goods that can be produced when available resources are used efficiently; a boundary line between inefficient and unattainable combinations.

Answer 11

Production Possibilities Frontier (PPF)​

Question 12

The condition that exists when there is no way resources can be reallocated to increase the production of one good without decreasing the production of another; getting the most from available resources.

Answer 12

Efficiency​

Question 13

What does it mean to say that production is inefficient?​

Answer 13

Production inefficiency is when resources are wasted, or when production levels are lower than their potential.

Question 14

5 Causes of inefficient production lines​

Answer 14

1. MACHINE QUALITY AND PERFORMANCE ​
2. EMPLOYEE KNOWLEDGE AND PERFORMANCE​
3. PRODUCT QUALITY​
4. SCHEDULE GAPS​
5. LACK OF SUSTAINABLE PROCESSES​

Question 15

The set of mechanisms and institutions that resolve the what, how, and for whom question

Answer 15

Economic System​​

Question 16

3 Economic System​​ Questions

Answer 16

1. What to produce?​
2. How to produce?​
3. To whom it will produce?​