Scarcity, Opp Cost & PPC

Front

What is the most basic problem of economics?

Back

Scarcity

Front

What is it called when you choose between two possible uses for a resource, giving up one alternative for another?

Back

Trade Offs

Front

What is the opportunity cost of the bakery's decision to make cookies instead of muffins?

Back

muffins

Front

What was Joe's opportunity cost when he selected the Ford truck over the Chevrolet?

Back

Chevrolet

Front

Trade-offs create this. It is the thing that you DO NOT chose. It is what you have to give up in order to get something else. It is your 2nd BEST ALTERNATIVE.

Back

Opportunity Cost

Front

Opportunity Cost is best defined as

Back

the value of the next best alternative that is given up due to the choice you made

Front

What is the production possibilities curve?

Back

a graph that shows how much an economy can produce between 2 goods

Front

If a point lies inside the curve, this tells the company what?

Back

They are not efficient.

Front

SSEF1(d) The opportunity cost of shifting production from "Point E" to "Point C" would be:

Back

20 chocolate bars

Front

If a natural disaster strikes, where would a production possibilities curve most likely shift?

Back

inward (as seen in Case 1)