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

3. Question 1 - 10 Define scarcity

4. Answer 1 – 10 Unlimited wants, limited resources.

5. Question 1 - 20 Define opportunity cost.

6. Answer 1 – 20 Next best alternative.

7. Question 1 - 30 Define trade-off.

8. Answer 1 – 30 Everything you give up when you make a choice.

9. Question 1 - 40 Define Normative Statements

10. Answer 1 – 40 Opinions/value judgment.

11. Question 1 - 50 Define Positive Statements.

12. Answer 1 – 50 Based on fact only.

13. Question 2 - 10 Dirt

14. Answer 2 – 10 Land

15. Question 2 - 20 A student taking automotive.

16. Answer 2 – 20 Human Capital

17. Question 2 - 30 Flipping hamburgers at MacDonald’s.

18. Answer 2 – 30 Labor

19. Question 2 - 40 A student taking a course in their major at college.

20. Answer 2 – 40 Human Capital

21. Question 2 - 50 Bill Gates

22. Answer 2 – 50 Entrepreneuer

23. Question 3 - 10 How do you show economic growth on a PPC?

24. Answer 3 – 10 Rightward shift.

25. Question 3 - 20 What causes the curve to shift? (3 things)

26. Answer 3 – 20 Change in resources, change in technology, change in trade.

27. 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.

28. Answer 3 – 30 Show Mr. Martinez your answer so he can talk about it.

29. Question 3 - 40 Draw a PPC. Label where Unemployment would be, as well as efficiency and unattainable.

30. Answer 3 – 40 Show Mr. Martinez your answer so he can talk about it.

31. 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.

32. Answer 3 – 50 Show Mr. Martinez your answer so he can talk about it.

33. Question 4 - 10 What is marginal analysis?

34. Answer 4 – 10 We will keep doing something as long as the benefit outweighs the cost.

35. Question 4 - 20 Mr. Pondy goes bowling 3 times in one week. His Marginal Analysis is as follows. 1 st time his benefit was $10, cost $5 2 nd time his benefit was $6, cost $5 3 rd time his benefit was $4, cost $5. Was the 3 rd time worth it by itself?

36. Answer 4 – 20 No

37. 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?

38. Answer 4 – 30 Yes

39. Question 4 - 40 Define marginal benefit. Is it necessarily money?

40. Answer 4 – 40 The additional benefit from consuming a good. No.

41. Question 4 - 50 Define Marginal Cost.

42. Answer 4 – 50 The cost of going somewhere repeatedly.

43. Question 5 - 10 Marginal =

44. Answer 5 – 10 Additional

45. Question 5 - 20 Allocate =

46. Answer 5 – 20 Distribute

47. Question 5 - 30 Utility =

48. Answer 5 – 30 Satisfaction

49. Question 5 - 40 Define Implicit Cost.

50. Answer 5 – 40 Forgone time and forgone income when making a decision.

51. Question 5 - 50 Define explicit costs.

52. Answer 5 – 50 Out of pocket expenses.