terms 1 factors of production ppc marginal analysis terms 2 10 20 30 40 50
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Terms 1 Factors of Production PPC Marginal
Analysis Terms 2
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Question 1 - 10
• Define scarcity
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Answer 1 – 10
• Unlimited wants, limited resources.
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Question 1 - 20
• Define opportunity cost.
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Answer 1 – 20
• Next best alternative.
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Question 1 - 30
• Define trade-off.
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Answer 1 – 30
• Everything you give up when you make a choice.
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Question 1 - 40
• Define Normative Statements
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Answer 1 – 40
• Opinions/value judgment.
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Question 1 - 50
• Define Positive Statements.
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Answer 1 – 50
• Based on fact only.
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Question 2 - 10
• Dirt
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Answer 2 – 10
• Land
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Question 2 - 20
• A student taking automotive.
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Answer 2 – 20
• Human Capital
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Question 2 - 30
• Flipping hamburgers at MacDonald’s.
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Answer 2 – 30
• Labor
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Question 2 - 40
• A student taking a course in their major at college.
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Answer 2 – 40
• Human Capital
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Question 2 - 50
• Bill Gates
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Answer 2 – 50
• Entrepreneuer
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Question 3 - 10
• How do you show economic growth on a PPC?
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Answer 3 – 10
• Rightward shift.
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Question 3 - 20
• What causes the curve to shift? (3 things)
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Answer 3 – 20
• Change in resources, change in technology, change in trade.
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Question 3 - 30
• Draw a PPC. Put laptops on the Y-Axis and asparagus on the X-Axis.
• Show me a productively efficient point on the PPC.
• Show me where the allocative efficient point on the graph would be.
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Answer 3 – 30
• Show Mr. Martinez your answer so he can talk about it.
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Question 3 - 40
• Draw a PPC. Label where Unemployment would be, as well as efficiency and unattainable.
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Answer 3 – 40
• Show Mr. Martinez your answer so he can talk about it.
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Question 3 - 50
• Draw a PPC. Put Cell Phones on the Y-Axis and put shoes on the X-Axis.
• Show the shift of what would happen if Nike closed its sweatshops.
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Answer 3 – 50
• Show Mr. Martinez your answer so he can talk about it.
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Question 4 - 10
• What is marginal analysis?
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Answer 4 – 10
• We will keep doing something as long as the benefit outweighs the cost.
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Question 4 - 20
• Mr. Pondy goes bowling 3 times in one week. His Marginal Analysis is as follows.
• 1st time his benefit was $10, cost $5• 2nd time his benefit was $6, cost $5• 3rd time his benefit was $4, cost $5.
• Was the 3rd time worth it by itself?
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Answer 4 – 20
• No
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Question 4 - 30
• Mr. Bennett goes golfing 3 times in one week. His cost benefit analysis is as follows.
• First time – Benefit was $30, Cost was $20• Second time – Benefit was $25, Cost was $20• Third time – Benefit was $20, Cost was $20.
• All in all, was it worth it?
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Answer 4 – 30
• Yes
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Question 4 - 40
• Define marginal benefit. Is it necessarily money?
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Answer 4 – 40
• The additional benefit from consuming a good. No.
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Question 4 - 50
• Define Marginal Cost.
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Answer 4 – 50
• The cost of going somewhere repeatedly.
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Question 5 - 10
• Marginal =
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Answer 5 – 10
• Additional
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Question 5 - 20
• Allocate =
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Answer 5 – 20
Distribute
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Question 5 - 30
• Utility =
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Answer 5 – 30
• Satisfaction
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Question 5 - 40
• Define Implicit Cost.
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Answer 5 – 40
• Forgone time and forgone income when making a decision.
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Question 5 - 50
• Define explicit costs.
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Answer 5 – 50
• Out of pocket expenses.