1. Unit 1 – Economic Problem

2. Categories Terms / ConceptsPPF Model Positive / Normative Types of Markets Calculations 100 200 300 400 500

3.  Define MICROECONOMICS

4.  The type of good produced in order to produce other goods.

5.  Used to explain real world situations on a smaller scale

6.  Otherwise known as inputs or resources

7. Define opportunity cost.

8. Name 2 factors that shift the PPF OUTWARD.

9.  A point inside the PPF is considered unattainable T / F. Why?

10. Which is the most efficient level of production? Refer to a PPF to explain.

11.  What are 2 reasons the PPF shifts INWARD?

12.  The production possibility frontier demonstrates this LAW.  Name and explain!

13.  What is the difference between a positive and normative statement?

14.  N or P?   Canada is the best country in the world.

15.  N or P?   Unemployment is more serious than inflation.

16.  N or P?   Canada’s national income has increased over the past 5 years.

17.  N or P?   The price of gasoline is higher than it needs to be.

18.  In this economy, we don’t make new advances, but we have a stable economy.

19.  Our basic needs are met, determined by a central decision maker.

20.  This question deals with the kind of resources to use based on their respective costs.

21.  Describe the benefits and drawbacks of the traditional economy.

22.  In this market system, production consists of high quality yet inexpensive goods as a result of competition.

23. Who has the Absolute advantage in Chips? In Donuts? Daily Production ChipsDonuts Chris1612 Sally814

24. What is Chris’s opportunity cost of chips? Sally’s? Daily Production ChipsDonuts Chris1612 Sally814

25. What is Chris’s opportunity cost of Donuts? Sally’s? Daily Production ChipsDonuts Chris1612 Sally814

26. Countries or firms specialize in the goods in which they have an absolute advantage. T or F  Why?

27. ABCDE Apples028364560 Oranges1209573510 What is the opportunity cost of the first 51 oranges?