Economics & Factors of Production & Cost-Benefit Analysis

What is Cost-Benefit Analysis?

• Whenever people decide whether the advantages of a particular action are likely to outweigh its drawbacks

• the process of creating a plan to spend your money.

• seeing which months your finances may be tight and which ones you'll have extra money

What is budgeting your money?

• Whenever people decide whether the advantages of a particular action are likely to outweigh its drawbacks

• the process of creating a plan to spend your money.

• seeing which months your finances may be tight and which ones you'll have extra money

What is budget forecasting?

• Whenever people decide whether the advantages of a particular action are likely to outweigh its drawbacks

• the process of creating a plan to spend your money.

• seeing which months your finances may be tight and which ones you'll have extra money

The skills of the workforce and the quantity of labour they produce. The reward for ______ is wages.

• Land

• Labor

• Capital

• enterprise

Investment in man-made aids to production including buildings, factories, computers. The reward for _____ is interest.

• Land

• Labor

• Capital

• enterprise

All natural resources including oil, fish, soil, forests. The reward for _____ is rent.

• Land

• Labor

• Capital

• enterprise

What are the three sectors of the economy? CHOOSE THREE.

• Primary

• Secondary

• Tertiary

• Quaternary

Next year in Indiana there is a surplus of corn. What will happen to the price of corn? It will go________.

• up

• down

Luis Vuitton sells casual shoes for $500. Converse sells casual shoes for $40. Why is it that Luis Vuitton can sell his shoes for 12 times the price of Converse shoes? There is a higher _____ for Luis Vuitton products.

• demand

• surplus

• scarcity

In two years there is a drought in the US. Most of our apples trees die. The price of apples will go _____ .

• up

• down