GDP divided by population is called… Per capita

resources are limited

US GDP Rank 1 2 3

wants and needs are unlimited

PPF stands for production possibilities frontier

This condition exist whenever there is not enough of something to fulfill every persons wants and needs scarcity

What analogy do economist use to describe the good and bad incentives that persuade our decision making Carrots and sticks

3 economic questions What, how, and for whom __________ to produce

Production Efficiency

The best forgone alternative Opportunity cost

An incurred cost that is non-refundable Sunk cost

Unattainable

Economics is the study of (two words) Decision making

What is your opportunity cost of this class today? Answers vary

Simplified constructs of reality models

Man made resources capital

Unemployment

List the 4 factors of production Land, labor, capital, and entrepreneurship

US economy is …mixed

North Korean economy is closest to … command

Workers labor

Natural resources land

A command element of US economy Taxes, FDA, public education, highways

An example of capital Tools, machines, buildings

Big picture economics macro

Where buyers and sellers come together Where exchanges take place markets

Same or Opposite Flow of Resources/Goods and $$$$$$

Whoever produces with a lower opportunity cost has the Comparative advantage

Efficient production of only grain

Opp. Cost of first 3 wine= 1 grain

command An economy in which the government controls resources

Positive or normative Micro or Macro The US economy is the best in the world

Water and oil are examples of land

The most desirable point of production is called allocative efficiency

The risk and creativity to start and continue a successful firm Entrepreneurship

Positive or normative Micro or Macro The US GDP is $16 trillion