1. Basic Economic Concepts
Unit One Review

2. IV. Supply and Demand
7. The government implements a new excise tax on unhealthy products, like soda and candy.

3. III. Factors of Production
5. Someone who can run their own business has this...

4. IV. Supply and Demand
4. Create a market for headphones and indicate where equilibrium would be.

5. II. Production Possibilities
4. Create a production possibilities curve that illustrates the effects new technology and resources would have on the production of goods.

6. I. Scarcity and Opportunity Cost
10. Give an example of a positive incentive and an example of a negative incentive.

7. III. Factors of Production
7. Medical school is which factor of production?

8. III. Factors of Production
8. A doctor performing surgery is which factor of production?

9. IV. Supply and Demand
3. The price of gas has increased in the United States. Illustrate how that would appear on a supply curve in a market.

10. IV. Supply and Demand
6. Consumers expect prices for clothes to decrease in a month when school gets back in session.

11. IV. Supply and Demand
2. Create a graph using the information above and determine whether the curve represents supply or demand.

12. III. Factors of Production
9. What term is used to describe, “when individuals or companies concentrate their productive efforts on a limited number of activities for which they have the lowest opportunity cost for?”

13. IV. Supply and Demand
1. Using a correctly labelled supply and demand graph, illustrate what would happen if consumers expect real estate prices to skyrocket in the future and how that would affect price and quantity.

14. I. Scarcity and Opportunity Cost
8. What is the difference between a scarcity and a shortage?

15. I. Scarcity and Opportunity Cost
6. What kind of incentive promotes the efficient resource allocation?

16. IV. Supply and Demand
5. The price of graphite increases. Illustrate how that would affect the market of pencils.

17. IV. Supply and Demand
8. The price of coffee beans for a latte decreases.

18. IV. Supply and Demand
17. Name two ways that the government influence supply

19. II. Production Possibilities
3. Draw a PPC that illustrates where production would be for guns and butter is the economy is in recession and millions of people are out of work.

20. II. Production Possibilities
1. Create a production possibilities curve using guns and butter as your axis and correctly label these points:
Unattainable
Inefficient
Full production during war
Full production during peace

21. III. Factors of Production
2. This is where firms purchase the factors of production necessary to create goods and services from households.

22. I. Scarcity and Opportunity Cost
7. Anything that can be used to produce a good or service, would be called?

23. II. Production Possibilities
2. Why points outside the PPC are called unattainable?

24. IV. Supply and Demand
9. Buyers expect the price of seafood to increase during tourist season.

25. I. Scarcity and Opportunity Cost
4. What is the desired alternative that must be given up to obtain something else?

26. IV. Supply and Demand
10. In a market for waffles, the price of syrup increases.

27. IV. Supply and Demand
11. What is the Law of Demand?

28. IV. Supply and Demand
12. What is the Law of Supply?

29. III. Factors of Production
1. Name the four factors of production.

30. I. Scarcity and Opportunity Cost
9. Which of these items is most likely to have a higher level of scarcity than the others? Water, Rocks, Oil, and Dirt

31. IV. Supply and Demand
13. Goods that are generally purchased together because they are consumed together.

32. III. Factors of Production
4. What is the law of comparative advantage?

33. IV. Supply and Demand
18. Name two ways that the government intervenes will supply.

34. IV. Supply and Demand
14. Goods that are interchangeable.

35. III. Factors of Production
6. Water is which factor of production?

36. I. Scarcity and Opportunity Cost
2. This term means to decide whether or not to use one more additional unit or resource.

37. III. Factors of Production
10. This allows for a larger total quantity of goods and a larger variety.

38. III. Factors of Production
3. What is comparative advantage?

39. I. Scarcity and Opportunity Cost
1. What term means “of limited amount?”

40. IV. Supply and Demand
16. Ceteris Paribus means…

41. IV. Supply and Demand
15. What are goods that are demanded more when consumer income rises?

42. I. Scarcity and Opportunity Cost
5. What is the most basic economic problem?

43. I. Scarcity and Opportunity Cost
3. What is the study of how people and society pursue satisfying their needs and wants?