Economics

Scarcity

❏ Resource may not be

readily available or
non-existence

❏ Faced by all societies
❏ Scarcity can mold our

values & effect the
decisions we make

Multiple Choice

Which scenario best represent scarcity?

• Morgan had highlighters, colored pencils, & a notebook. She used her tools to create graphic notes

• T'Mara had tablet that she used to create her writing assignments

• Devin did not have a laptop or tablet to create her presentation for her project

Utility

❏ The usefulness of good

or services to the
consumer

Multiple Choice

Which utility is best for a person who likes to cook?

Value

❏ Worthiness of something
❏ Scarcity + Utility = Value

Goods

❏ Things that are

produced

❏ Examples:

❏ Sneakers
❏ Washing machine
❏ Car
❏ Cheeseburger
❏ Paper clip

Multiple Choice

What are goods?

• Made by individuals in developing countries

• Only created by large companies

• Things that are deposed

• Things that are made

Services

❏ Refer to things people

do with goods

❏ Example:

❏ Cosmetologist
❏ Tour guide
❏ Oil change
❏ Doctor

Multiple Choice

And example of service

• an apple

• getting a tattoo

• Samsung 14 Pro

• visiting a psychologist

Wealth

❏ A collection of tangible

goods & resources.

❏ Wealth does not apply to

services

Multiple Choice

Wealth does apply to services

• True

• False

Production Possibilities Curve (PPC)

❏ Demonstrates all the

available & efficient
combinations of output
that can be produced

Multiple Choice

What does PPC indicate?

• a type of product produced in develop countries

• number of services available

• input

• output

Opportunity Cost

❏ What is being sacrificed

to have something

❏ It is the choice of 1

alternative over another

Multiple Choice

Which opportunity cost is more profitable?

• Gregg made 1 blanket from 20 bundles of yarn

• Michelle made 20 apple pies from 10 apples

• Dreston created 100 paintings with 1 container of paint

Specialization

❏ When one performs a

particular job

Absolute advantage

❏ A country out produces

other countries in
everything it produces

Multiple Choice

Uganda produced more cacao than the United States?

• discount advantage

• absolute advantage

• collate ration advantage

• service advantage

Comparative advantage

❏ Countries produce items

at a lower opportunity
cost than other countries

❏ Specialization is key

Multiple Choice

What is key to comparative advantage?

• goods

• services

• specialization

• bankruptcy

Factors of
Production

Land

❖ Physical land
❖ Natural resources
❖ Not created by humans

Labor

❖ The work used in

production

❖ Needed for labor

➢ Skilled labor
➢ unskilled labor

Capital

❖ Tools
❖ Machinery
❖ Buildings
❖ Items needed to

produce something

Entrepreneurship

❖ People who take the risk

to create something new

❖ Use the factors of

production

❖ Drive technology &

innovation

Multiple Choice

Which of the factors of production involve the equipment for production of products?

• capital

• land

• entrepreneurship

• labor