SSEF1 The student will explain why limited productive resources and unlimited wants result in scarcity, opportunity
costs, and trade-offs for individuals, businesses, and governments.

Define scarcity as a basic condition that exists when unlimited wants exceed limited productive resources.

Define and give examples of productive resources
(factors of production) (e.g., land (natural), labor
(human), capital (capital goods), entrepreneurship).
 List a variety of strategies for allocating scarce resources.

Define opportunity cost as the next best alternative given up when individuals, businesses, and governments confront scarcity by making choices.
SSEF2 The student will give examples of how rational decision
making entails comparing the marginal benefits and the
marginal costs of an action.

Illustrate by means of a production possibilities curve the tradeoffs between two options.

Explain that rational decisions occur when the marginal benefits of an action equal or exceed the marginal costs.
SSEF3 The student will explain how specialization and voluntary exchange between buyers and sellers increase the satisfaction of both parties.
 Give examples of how individuals and businesses specialize.

Explain that both parties gain as a result of voluntary, non-fraudulent exchange.
SSEF4 The student will 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.

Compare command, market, and mixed economic
systems with regard to private ownership, profit motive, consumer sovereignty, competition, and government regulation.
 Evaluate how well each type of system answers the three economic questions and meets the broad social and economic goals of freedom, security, equity, growth, efficiency, and stability.
SSEF5 The student will describe the roles of government in a market economy.

Explain why government provides public goods and services, redistributes income, protects property
rights, and resolves market failures.

Give examples of government regulation and
deregulation and their effects on consumers and producers.
SSEF6 The student will 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.

Define productivity as the relationship of inputs to outputs.

Give illustrations of investment in equipment and technology and explain their relationship to economic growth.

Give examples of how investment in education can lead to a higher standard of living.
Circular Flow Diagram
Consumers
Division of Labor
Durable goods
Economic Growth
Economic Institution
Economics
Entrepreneur
Externality
Factor Market
Functional Income Distribution
GDP (Gross Domestic Product)
Goods
Incentive
Income distribution
Inter-dependence
Invisible hand
Laissez-faire
Marginal Utility
Marginal Costs/Benefits
Market
Monopoly
Needs
Non-durable goods
Non-Exclusion
Opportunity cost
Paradox of Value
Product Market
Production Possibility Curve (PPC)
Productivity
Property Rights
Pure Private Good
Pure Public Good
Scarcity
Services
Shared Consumption
Specialization
Technology of Production
TINSTAAFL
Trade
Utility
Value
Wants
Wealth
1

1.
What are the 4 key elements to the study of economics?
2.
What are the 4 factors of production (4 productive resources)?
3.
What are the 6 methods we discussed in class for allocating scarce resources?
4.
What is an opportunity cost NOT?
5.
Explain why opportunity cost is NOT MONEY.
6.
What does a PPC illustrate?
7.
When do you participate in the factor market?
8.
When do you participate in the product market?
9.
How is division of labor a characteristic of assembly line production?
10.
What book first promoted the concept of specialization in the economy, who wrote it and when was it published?
11.
What are the 3 reasons this book identifies as being why division of labor increases output?
12.
What are the 3 basic economic questions?
13.
What are the 2 main economic systems recognized by economists?
14.
What is another term for a “market” system?
15.
What is it called when an economic system is made up of elements of more than one economic system?
16.
What type of economic system is used by native populations like the Inuit?
17.
What are the characteristics of a market economy?
18.
What is the role of government in a command economy?
19.
When is an economic system most successful?
20.
Give 1 example of investments in human capital.
21.
What are 3 examples of laws that are economic institutions?
22.
What are the 8 roles the U.S. government plays in the U.S. economy?
23.
What are the 3 areas, when markets fail, where the government role in the economy is important?
24.
What gives you the right to be paid for your work?
25.
What are the four things that provide incentives?
26.
What are the 2 conditions under which markets fail?
27.
What are 4 examples of market failures?
28.
What are the three things that an increase in productivity can mean?
29.
Why is an increase in productivity important?
30.
Name at least one way that greater productivity can be achieved?
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