CHAPTER 1 REVIEW DAY, 1/22Warm up

• Page 34 Q’s 1-8– You do not have to copy the questions, just

answer them in complete sentences

• Be prepared to show me your notebook– 50 Points

Review Time!

Which of the following fulfills a need?A. video GamesB. FoodC. JewelryD. Movie Tickets

• B. Food

The study of how people choose to use scarce resources to satisfy their desires

• economics

The ongoing problem of not having enough resources to meet unlimited human wants

• Scarcity

Physical products that can be purchased

• Good

The human time, effort, and talent that go into the making of products

• labor

The office space and copy machines used at a copy store is which of the 4 factors of production?

• Capital

Benefits offered to encourage people to act in certain ways are

• incentives

The alternative you give up when you make an economic choice

• Trade-off

The benefit or satisfaction gained from the use of a good or service

• Utility

A cost-benefit analysis is often organized by using a _________ grid

• Decision making grid

The value of what you give up by choosing one alternative over another

• Opportunity cost

Simplified representations of complex economic activities are called economic ___________

• models

The condition in which economic resources are not being used to their full potential

• Underutilization

Production Possibilities at Posters, Inc.

Poster boards Foam boards1,000 0800 250600 500400 750200 1,0000 1,250

400 Poster boards

What is the opportunity cost of producing 500 Foam boards?

Production Possibilities at Posters, Inc.

Poster boards Foam boards1,000 0800 250600 500400 750200 1,0000 1,250

Efficiency

If Posters, Inc. were to produce 600 Poster boards and 500 Foam boards, it would mean that they were practicing ___________________.

Numerical data or information

• statistics

Studies economic behavior as it is

• Positive economics

What kind of graph shows statistical changes over time?

• Line graph

involves judgment of what economic behavior should be

• Normative economics

Study of the behavior of individuals in an economy

• microeconomics

Study of the behavior of the economic as a whole

• Macroeconomics

According to Adam Smith, it’s as if there were a(n) __________ guiding the free market

• Invisible hand