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capital
factors of production
production possibilities graph
law of increasing costs
guns or butter
trade-offs
scarcity and shortage
opportunity cost
trade-offs
physical capital
centrally planned economy
competition
economic system
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specialization
centrally planned economy
incentive
self-interest
traditional economies
product market
economic system
mixed economy
business cycles
government role
free enterprise
gross domestic product
Circular Flow Diagram
Short answer fill-in
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What is the difference between a shortage and scarcity?
Define scarcity.
What is the difference between opportunity cost and a trade-off?
List three of the seven basic principles of free enterprise.
What is the difference between physical capital and human capital?
What are the four basic economic systems?
List three economic goals that most economic systems try to address.
Short Essay Question (answer two of the following):
1.
Of the seven basic principles of free enterprise, which do you think is most important to the
success of a capitalist system? Explain your answer.
2.
Explain the connection between the 3 basic economic questions and the types of economic
system.
3.
How would a Couch Potato be used to explain opportunity costs?
4.
Use “Cast Away” to explain basic economic concepts. Be sure to include:
a. scarcity
b. the type of economic system that appeared in the movie (support)
c. list and explain the 3 types of resources using example