1. Introduction to Economics The Second Quiz Review

2. This is a basic condition of living on this planet, there is only so much time and resources available to us.

3. Scarcity

4. This is the knowledge of how to run a table saw without cutting your hand off, accidentally.

5. Human Capital

6. This occurs because we’ve failed to plan ahead, or maybe a big snow storm (rare though they may be) has made it hard to restock the shelves at Wegmans.

7. Shortage

8. This would include, dirt, a building, corn seed, a hammer, post-it-notes, a typewriter and a person who can actually type.

9. Factors of Production

10. Speaking of which, this would include the effort someone provides, for pay, to provide you a doughnut and coffee.

11. Labor

12. This is the trade-off every government has to make for its people, the USSR did a poor job, the United States on the other hand, did a good job

13. Guns or butter

14. With almost every trade off, one of the rejected alternatives is more desirable than the other choices. This most desirable choice is called

15. Opportunity Cost

16. This is the study of how we, and you, satisfy our unlimited wants with our unlimited resources.

17. Economics

18. What does thinking at the margin mean?

19. When you start considering the idea of adding another worker or another tool or line of workers – and the benefits or costs thereof.

20. This is the cost of adding one unit, whether it be sleeping an extra hour or adding another deep fat fryer at McDonalds.

21. Marginal Cost

22. This is the extra benefit of adding one more unit.

23. Marginal Benefit

24. This is a graph that shows alternative ways to use an economy’s productive resources.

25. Production Possibilities Curve

26. This is the use of fewer resources than the economy is capable of producing.

27. Underutilization

28. This shows the combination of both options available, like guns or butter, tanks and wheat, shoes and candy bars.

29. Production Possibilities Frontier

30. This is the use of resources in such a way as to maximize the output of goods and services

31. Efficiency

32. Well, there you have it, all you need to do well on the next quiz. The only thing missing is trading off some free time for study time.