1) Explain why limited productive resources and unlimited wants result in scarcity, opportunity costs, and tradeoffs for
individuals, businesses, and governments.
a. Define scarcity:
b1&2. Define the factors of production and
give examples:
c. What does efficiency mean and why is it
important?
d1. Define opportunity cost:
d2. give an example of opportunity cost
2) Give examples of how rational decision making entails comparing marginal benefits and marginal costs of an action.
a1. What is the production possibilities
curve?
a2. what 2 things cause the production
possibilities curve to shift?
a3. what does it mean when the PPC
moves to the right?
a4. What is the point inside the PPC
called? What does it mean?
b. between a $1 Snickers and a $1.05
Reese’s - Which do you choose? Why?
3) Explain how specialization and voluntary exchange between buyers and sellers increase the satisfaction of both parties
a. Give example of how someone could use
specialization when working at McDonalds.
b. Why would you want to trade goods with
someone else?
4) Compare and contrast different economic systems and explain how they answer the three basic economic questions of
what to produce, how to produce, and for whom to produce.
a1. Define the command, market, and
mixed economic systems with regards to
what, how, and for whom to produce.
a2. Define private ownership, profit motive,
consumer sovereignty, competition, and
government regulation.
b1. Define the economic goals of freedom,
security, equity, growth, efficiency, and
stability.
b2. Which goals (b1) do each system
follow? Command –
Mixed –
Market –
5) Describe the roles of government in a market economy.
a. Why does the government provides
public goods and services, redistribute
income, protect property rights, and
resolves market failures?
b1. Give an example of government
regulation and deregulation.
b2. How does regulation and deregulation
affect consumers and producers?
6) Explain how productivity, economic growth, and future standards of living are influenced by investment in factories,
machinery, new technology, and the health, education, and training of people.
a. Define productivity:
b. How can a new piece of machinery
(technology) or tools help a business?
What does this do to the PPC?
c1. Define standard of living:
c2. when a company invests in education
leading to a high standard of living, what
factor of production is it investing in?