4 Factors of Production Economies PrinciplesDefinitionsPPF 10 20 30 40 50.
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Transcript of 4 Factors of Production Economies PrinciplesDefinitionsPPF 10 20 30 40 50.
4 Factors of
Production Economies Principles Definitions PPF
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
• What are the 4 factors of production?
Answer 1 – 10
• (C.E.L.L.)– Capital – Entrepreneurship – Land – Labor
Question 1 - 20
• What are the two types of capital?
Answer 1 – 20
• Capital Goods (man-made)• Human Capital (the know-how)
Question 1 - 30
• How do Economists define “Land”?
Answer 1 – 30
• Not just Real Estate but also natural resources
Question 1 - 40
• The following could be factors of production:– Capital resources– Human resources – Natural resources
– True of False
Answer 1 – 40
• True
Question 1 - 50
• This term refers to a product’s usefulness.
Answer 1 – 50
• Utility
Question 2 - 10
• What is a mixed economy?
Answer 2 – 10
• A combination of a market and command economy.
Question 2 - 20
• The American economy is a.
Answer 2 – 20
• Mixed Economy
Question 2 - 30
• There are a few true market economies in the world.
• True of False
Answer 2 – 30
• False
Question 2 - 40
• Match the following economist with the type of economies they created
• Karl Marx Market • John Keynes Mixed• Adam Smith Command
Answer 2 – 40
• Karl Marx- Command• John Keynes- Mixed• Adam Smith- Market
Question 2 - 50
• The “invisible hand” refer to:
Answer 2 – 50
• The fact that individuals, pursuing their own self-interest, achieve the best good for all when operating in the market economy.
Question 3 - 10
• The heart of the economic problem is to:
Answer 3 – 10
• Allocate limited resources among unlimited uses.
Question 3 - 20
• What must be given up to gain a unit of a good is that good’s
Answer 3 – 20
• Opportunity cost
Question 3 - 30
• The circular flow model represents
Answer 3 – 30
• The resource and product markets
Question 3 - 40
• The goal of economic stability has two concerns:
Answer 3 – 40
• Full employment and stable prices
Question 3 - 50
• What would help a company improve efficiency?
Answer 3 – 50
• Introduce division of labor • Specialization • Advances in technology
Question 4 - 10
• Economists use the term allocation to refer to
Answer 4 – 10
• Deciding who gets good and services
Question 4 - 20
• Economics is primarily concerned with
Answer 4 – 20
• The allocation of scarce resources
Question 4 - 30
• Economics is the study of the relationship between
Answer 4 – 30
• People’s unlimited wants and their scare resources
Question 4 - 40
• Economic efficiency is making the best use of
Answer 4 – 40
• Scarce resources
Question 4 - 50
• What is specialization?
Answer 4 – 50
• individualized focus on one task
Question 5 - 10
• What can cause an outward shift on the PPF?
Answer 5 – 10
• Increase in resources or an advancement in technology
Question 5 - 20
• What is illustrated by the PPC
Answer 5 – 20
• All combinations of two goods that can be produced given current resources
Question 5 - 30
What does point x and y mean?
Answer 5 – 30
• Point X= inefficiency
• Point Y= unattainable/ impossible
Question 5 - 40As the economy moves from point D to E:
Answer 5 – 40
It gives up 3 units of guns and gains 1 unit of butter
Question 5 - 50
• Why might an economy produce at a level of output beneath its PPF?
Answer 5 – 50
• Resources or technology is not being used efficiently