1. GDP divided by population is called…
Per capita

2. resources are limited

3. US GDP Rank 1 2 3

4. wants and needs are unlimited

5. PPF stands for production possibilities frontier

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

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

8. 3 economic questions What, how, and for whom __________ to produce

9. Production Efficiency

10. The best forgone alternative
Opportunity cost

11. An incurred cost that is non-refundable
Sunk cost

12. Unattainable

13. Economics is the study of (two words)
Decision making

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

15. Simplified constructs of reality
models

16. Man made resources
capital

17. Unemployment

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

19. US economy is …mixed

20. North Korean economy is closest to …
command

21. Workers
labor

22. Natural resources
land

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

24. An example of capital
Tools, machines, buildings

25. Big picture economics
macro

26. Where buyers and sellers come together
Where exchanges take place
markets

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

28. Whoever produces with a lower opportunity cost has the
Comparative advantage

29. Efficient production of only grain

30. Opp. Cost of first 3 wine= 1 grain

31. command
An economy in which the government controls resources

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

33. Water and oil are examples of land

34. The most desirable point of production is called allocative efficiency

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

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