Name: ________________________________
1.
Define Scarcity
2.
Define Economics
3.
Identify the relationship between scarcity and choices
4.
Explain how Macroeconomics is different than Micro
5.
Explain the difference between positive and normative economics
6.
Identify the 5 main assumptions of Economics
7.
Differentiate between price and cost
8.
Differentiate between consumer and capital goods
9.
Differentiate between command economies and free market economies
10. List all 4 factors of production
11. Give an example of each of the factors of production
12. Define human capital
13. Define tradeoffs
14. Define opportunity cost
15. Explain the difference between increasing and constant opportunity cost
16. Explain the law of increasing opportunity cost
17. Draw a PPC graph with apples and oranges. Show a point that is efficient, inefficient, and unobtainable.
18. What are the three shifters of the PPC?
19. How do you find the opportunity cost if you can make 5 cakes a day or 3 pies a day?
20. Why should people and countries specialize?
21. What is terms of trade?
22. Give an example of a terms of trade that benefits both parties.