Economics Review Game STUDY ME!!!!!

What is scarcity? All resources are limited. Scarcity comes about when people try to satisfy unlimited demand with limited resources.

What is a traditional economy? A traditional economy is defined by three major things: It is heavily dependent on agriculture. People often barter (exchanging items of value for one another rather than money). Economic decisions are based on tradition, beliefs, or habits.

What is a command economy? The government is the director of the economy in a command economy. The government makes rules and regulations to control what, how, and where something is produced.

What is a market economy? Economic decisions are made by individuals in a market economy. Supply and demand determine what and how much of something is produced.

What is an opportunity cost? Opportunity cost refers to a benefit that a person could have received, but gave up, to take another course of action

What is an opportunity benefit? The benefit gained from a decision made. If a consumer chooses to buy a hat instead of a scarf, the hat is the benefit while the scarf is the cost.

What is the LA Movie Tax Credit and how did it make Louisiana the Hollywood of the South? The film industry in Louisiana has grown dramatically in recent years largely due to the state’s 2002 tax incentives aimed at attracting film and television companies. The success of Louisiana's film industry caused the state to be nicknamed " Hollywood South" or "Hollywood on the Bayou" .

What is the difference between a good and a service? A good is an actual physical item (like a pair of shoes) while a service is exactly what it sounds like, it is a service someone provides you (ex. Waitress)

What is the law of supply and demand? When the supply of an item is high, the price is low. When there is a limited quantity of an item, its price rises. As the price rises, demand usually decreases. When prices go down, demand increases. https://www.youtube.com/watch?v=Ng3XHPdexNM  this video explain supply and demand using a hula- hoop!

What is a capital resource? Capital resources are used to process natural resources. Examples of capital resources found in Louisiana include: lumber mills, sugar refineries, rice mills, and oil refineries.

What is a human resource? When humans supply the labor (physical or mental) for a good or service, they are an economic resource.

What is a characteristic of a trade off, economically speaking? A trade-off involves a sacrifice that must be made to get a certain product or experience. Ex. You don’t go out to eat for 6 months so you can afford.

How did the Mississippi River lead to the economic development of LA? The Mississippi River provides excellent means of importing and exporting goods. It also allows for easier transportation of goods within the state itself. THE RIVER THE RIVER THE RIVER

What historical event stagnated the LA economy for years What historical event stagnated the LA economy for years? This dropped us from one of the best economies to one of the worst in the US. The Civil War

How would the production of Higgins boats improve the economy during the Great Depression? It provided thousands of jobs to the citizens of LA. People had more money to spend with these jobs which stimulated the economy.

What is reforestation and what is its benefit? Reforestation began in 1921. This is when new trees are planted to replace the ones that were cut down.

What are right-to-work laws? When the right-to-work laws went into effect in 1976, labor unions became less powerful. These laws stated that no one could be forced to join a union to get a certain kind of job.

What are the purpose of labor unions? Labor unions are formed by people who do the same kind of work. They come together to negotiate safe working conditions and fair wages between themselves and their employers.

What is NAFTA and its purpose? The North American Free Trade Agreement (NAFTA) ended restrictions, like tariffs, on US trading with Mexico and Canada. As a result of NAFTA, many businesses moved their textile companies in Louisiana to Mexico where the labor was cheaper.

What is a tariff? Tariffs (taxes placed on imported goods) protect U.S. producers from losing business due to cheaper prices for goods abroad.

What is Gross Domestic Product (GDP)? Gross Domestic Product (GDP) is one of the best economic indicators. It is the amount of goods and services produced in a year in one country.

What is inflation? Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency (Money) is falling.