Economics (H) Chapter 1 Review Game

Factors of Production Production Possibilities Goods & Services Productivity & Growth Value & Wealth MISC (90) (100)100

A1 List all four Factors of Production: LAND, LABOR, CAPITAL, and ENTREPRENEURS

A2 Equipment used in production. CAPITAL

A3 Human resources that serve as productive contributions in the economy. LABOR

A4 Encompasses all the non- human gifts of nature, including timber, water, fish, and fertility. LAND

A5 Involves human resources that perform the functions of organizing, managing, and assembling the other factors of production to make business ventures. Entrepreneur

A6 Why are Entrepreneurs so vital to a Free Enterprise Economy? They bring new products and production methods.

A7 The money used to buy the tools and equipment used in production. Financial Capital

A8

A9

A10

B1 A diagram representing various combinations of goods and/or services an economy can produce when all productive resources are fully employed. PPF

B2 Draw a Production Possibilities Frontier on the board Label all parts.

B3 Production Possibilities Frontier Fully Employed Resources? A B C B

B4 Production Possibilities Frontier A B C Cost of Idle Resources? A

B5

B6 Production Possibilities Frontier A B C Impossible Production? C

B7 Production Possibilities Frontier Economic Growth (Draw) 2 nd Line

B8 Production Possibilities Frontier W Opportunity Cost of W to Z? 1 more B – 5 less A Z 10 5 A B12

B9 Production Possibilities Frontier W Opportunity Cost of Z to W? 5 more A – 1 less B Z 10 5 A B12

B10

C1 Economic product that is economically useful or satisfies an economic want. GOOD

C2 Economic product that is performed for someone SERVICE

C3 Markets where producers sell their goods and services to consumers. Products Market

C4 Any good that lasts less than three years. Non-Durable

C5 Good that is intended for final use by an individual. Consumer Good

C6 Any good that lasts more than three years. Durable

C7 Good that is used to produce other goods and services. Capital Good

C8 Person who uses goods and services to satisfy wants and needs Consumer

C9 Provide an example of a CAPITAL GOOD: Answers will vary

C10

D1 Measure of the amount of output produced by a given amount of inputs in a specific period of time. Productivity

D2 This occurs when a nation’s total output of goods and services increases over time. Economic Growth

D3 In order to increase productivity, what must happen first? Improve Efficiency (More Output with same Input)

D4 If you were a manager in a factory, what might be two ideas to improve productivity? (2) Division of Labor or Specialization

D5 This takes place when factors of production perform tasks relatively more efficiently. Specialization

D6 This takes place when work is arranged so that individual workers do fewer tasks than before. Division of Labor

D7 In order to improve productivity, what can a business do? Offer job training and motivation

D8 Markets where productive resources are bought and sold. Factors Market

D9 The sum of the skills, abilities, health, and motivation of people. Human Capital

D10

E1 Refers to a worth that can be expressed in dollars and cents. VALUE

E2 The capacity to be useful and provide satisfaction. UTILITY

E3 The accumulation of those products that is tangible, scarce, useful, and transferable from one person to another. WEALTH

E4 What impact does SCARCITY have on VALUE? The more scarce, the higher the value

E5 Explain why the price of a necessity like water is so low: Even though a necessity, water is NOT scarce.

E6 Explain: The Paradox of Value Some necessities have little monetary value, while some non-necessities have a high monetary value.

E7 In order for an item to have VALUE, what must it have? Must be both Scarce and have Utility.

E8 What is the difficulty in measuring UTILITY? The utility of a good will vary from one person to another.

E9

E10

F1 Basic requirement for survival and includes food, clothing, and shelter. NEED

F2 A way of thinking about a problem that compares the costs of an action to benefits received. Cost-Benefit Analysis

F3 Study of how people try to satisfy what appears to be seemingly unlimited wants with limited resources. Economics

F4 Alternative Choices Trade-Offs

F5 The dollar value of all final goods and services produced within a country’s borders in a year. Gross Domestic Product

F6 All parts of the economy rely on each other for success or failure. Economic Interdependence

F7 The cost of the next best alternative use of money, time, or resources when one choice is made rather than another. Opportunity Cost

F8 An economy in which consumers and privately owned businesses, not government, make the decisions. Free-Enterprise Economy

F9 The quality of life based on the possession of the necessities and luxuries that make life easier. Standard of Living

F10

Interpreting Maps