2. Begin Mayra Alvizo Period 2

3. $100 $200 $300 $400 $500 Unit 2 Unit 3 MixedGraphs(curves)Vocab Unit 1

4. C1-$100 - $100 What is Absolute Advantage and Comparative Advantage? Absolute: The producer that can produce the most output OR requires the least amount of inputs (resources) Comparative: The producer with the lowest opportunity cost

5. C1-$200 - $200 Give an example of capital goods. Oil-drilling equipment, pizza oven

6. C1-$300 - $300 -land -labor -capital -entrepreneurship What are the four factors of production?

7. C1-$400 - $400 What are the Shifters of Demand ? Tastes and Preferences Number of Consumers Price of Related Goods Income Future Expectations

8. C1-$500 - $500 What are the Shifters of Supply? Prices/Availability of inputs (resources) Number of Sellers Technology Government Action: Taxes & Subsidies Opportunity Cost of Alternative Production Expectations of Future Profit

9. C2-$100 - $100 What is GDP? The total value of all final goods and services produced in the economy during a given year.

10. C2-$200 - $200 When there is a change in the percentage per year in a price index what is it called? Inflation rate

11. C2-$300 - $300 What is Final Goods and services? Goods and services sold to the final or end

12. C2-$400 - $400 What type of formula is this? CPI

13. C2-$500 - $500 What unemployment rate arises form the effect of frictional plus structural unemployment Natural Rate of unemployment

14. C3-$100 - $100 If aggregate demand increases and aggregated supply decreases the price level: Will increase but real output is indeterminate

15. C3-$200 - $200 What is aggregate demand? It is the total demand for final goods and services in the economy at a given time and price level.

16. C3-$300 - $300 What is aggregate supply? It is the total supply of goods and services that firms in a national economy plan on selling during a specific time period.

17. C3-$400 - $400 What is the Keynesian model? theory of total spending in the economy and its effects on output and inflation.

18. C3-$500 - $500 What is a recession? It is a business cycle that slows down economy activity.

19. C4-$100 - $100 What are automatic stabilizers? It is policies and programs that are designed to offset fluctuations in a nation's economic activity without intervention by the government or policymakers.

20. C3-200 - $200 What is a Circular flow model? It is a model which illustrates the flow of goods and services through the economy.

21. C3-$300 - $300 Give an example of a Complementary Goods For example: peanut butter and jelly.

22. C3-$400 - $400 What is the Law of Supply? It is the higher the price for a good or service, all other things being equal, leads suppliers to supply a greater quantity of that good or service. Illustrated as a direct or positive relationship.

23. C3-$500 - $500 Give some examples of Consumer goods For example: cars, pizza, and shirts.

24. C4-$100 - $100 What type of curve is this? Supply and demand

25. C4-$200 - $200 What type of curve is this? PPF

26. C4-$300 - $300 What type of curve is this? PPC

27. C4-$400 - $400 What type of curve is this? SRAS

28. C4-$500 - $500 What type of curve is this? Aggregated Demand Curve

29. C4-$100 - $100 What is Scarce/scarcity? Resources (anything that can be used to produce something else) are not unlimited and are not available in sufficient quantities to satisfy all the various ways a society wants to use them. Examples: money, food, time.

30. C4-$200 - $200 What is normal GDP? It is the total value of all final goods and services produced in the economy during a given year, calculated with the price currently in the year which the output is produced.

31. C4-$300 - $300 What is Allocative efficiency? It is the resources and goods are distributed in such a way that consumers are as well off as possible. Resources are being used to make the goods and provide the services that society wants and needs.

32. C4-$400 - $400 A hypothetical set of consumer purchases of goods and services what is this? Market Basket

33. C4-$500 - $500 What is Free market economies? An economic system based on supply and demand with little or no government control. Buyers and sellers are allowed to transact freely based on mutual agreement.