Unit 1 Review Economics

Write a paragraph that explains the concept of opportunity costs by restating the main idea of the concept in your own words.

Opportunity costs show the possible benefits a single person, investor, or job does not see when choosing one option or another. Since opportunity costs are hidden, they can simply be left behind. Knowing the possible missed opportunities foregone by picking one speculation over another permits for better decision-making.

Write a paragraph in which you explain the term "guns or butter" in the context of economic trade-offs and opportunity costs. Is "guns or butter" an inevitable choice? Explain your answer using real-life examples.

The term "guns or butter" is used to represent one of the customary decisions facing the government: the decision between disbursing money on military or family needs. A country that chooses to make more military goods has hardly any resources to allocate to consumer goods and vice versa. "Guns versus butter" has come back in style politically. "Guns" represents rebursing on security concerns as opposed to welfare pursuits or "butter." The decision between nations isn't usually either "guns" or "butter" but rather the amount of guns and butter a nation has. Also, yes, "guns or butter" is an inevitable choice because it's the same as any other trade-off meaning that scarcity could affect it. One example would be Denmark taking care of its people instead of going to war. Another example is Lyndon B. Johnson's Great Society programs in the 1960s when he was a President of the United States.

Write a paragraph that describes the economic factors of production. In your paragraph, consider the following questions: • What are the three economic factors of production? • Which factor of production would the effort of an assembly-line worker be an example of? • Coal is an example of which factor of production? • A bank of computers is an example of which factor of production?

The three economic factors are land, labor, and capital. Land production means that it can take on numerous forms, from agricultural land to commercial real estate to the resources in a specific area. Labor production means the real economic production per hour. Capital production means the purchase of goods within the amount of money in the production. An assembly line worker is an example of labor because it represents real economic production per labor hour. Also, coal is an example of land because it represents any natural resource used to make goods and services. Lastly, a bank of computers is an example of capital because it refers to the purchase of goods produced with money.

Write a paragraph that explains why choice is a basic economic problem faced by every society. In your paragraph, answer the following questions: • How does the text define economics using the idea of making choices? • In what way does scarcity make the problem of choice inevitable in all societies?

Economics is used in the idea of making choices by the potential of a consumer or producer to determine which goods, services, or resources to purchase from various feasible options. Also, scarcity of resources provides a rise to the fundamental economic problem of choice. As a society can't produce enough goods and services to please what people mostly want, it has to make choices. The choice to produce a single good needs a choice to produce less within another good.

Using the map above, answer the following questions: • Which country on the map is an example of the scarcity of mineral resources? • According to the map, what is the scarcity the United States faces? • In what way can a country still face scarcity even if the particular resource is plentiful within its borders?

-Japan -Petroleum -If its particular resource is plentiful, that means a country can run out of that resource easily and it can still be scarce in another area where the resources are limited to a specific amount including the fact that it has more than one use.

Using the quotations above, describe the decision-making process you would use to decide whether going to college is worth it, making reference to specific opportunity costs. Write a paragraph summarizing your decision-making process that includes gathering information, identifying options, predicting consequences, and taking actions to implement the decision.

In my opinion, I would apply to college because it's worth it and I would make lots of money from it. Also, I think it would be interesting to try out something new that I've never tried out before. For instance, I want to be a veterinarian assistant and a couple colleges I could attend is Purdue University or some sort of college in Florida, St. Petersburg. But, the only bad thing about that is I may not get a high school diploma or college degree. Also, I may not get enough money to pay for my job. The main action I would take is studying more and trying harder in order to make money for my job.

Write a paragraph in which you answer the following questions related to the concept of scarcity: • Are resources limited or unlimited? • What does it mean that the things people want are unlimited? • How does scarcity relate to resources and the wants of people?

Resources are limited because of scarcity. Unlimited wants means that there is not enough of the product and that there is something else that they would want to have in general. When put together with limited resources, unlimited wants result in the basic problem of scarcity. Also, scarcity represents the fundamental economic problem meaning that the space between limited resources and theoretically boundless wants. The situation needs people to make their own choices about how to grant resources efficiently, in order to please fundamental needs and as many as extra wants as feasible.

What is scarcity, as the term is used in economics? What is an everyday example of scarcity that demonstrates why scarcity is a basic economic problem that faces every society?

Scarcity means that you have a shortage of something. For example, scarcity could affect a store because if they are running low on apples, they can't replace them until they get new ones which normally would take a while to do.

Create a written presentation that explains the concept of scarcity and why it is a basic economic problem faced by every society. Be sure to explain the difference between scarcity and a shortage. Make an outline of your main points before you begin to write and include examples as supporting evidence for your presentation.

Scarcity means the shortage of a product and shortage means a state or situation in which a product can't be provided in significant amounts. Therefore, scarcity can limit the decisions obtainable to the consumers who fundamentally create the economy. Scarcity is a basic economic problem faced by every society because while resources are limited, every society has unlimited wants, especially us. Some examples of scarcity are land shortage, water scarcity, labour shortages, healthcare shortages, seasonal shortages, and fixed supply of roads. Some examples of a shortage are temporary supply constraints, fixed prices, and government price controls.

Review the tables and charts in Lesson 3 that illustrate Copeland's production possibilities regarding shoes and watermelons. Based on that example, create a production possibilities curve graph using economic data of your own creation. Include one curve that you interpret as an efficient use of resources and one that is inefficient. First create a table and then a graph based on the information in the table.

See graph on google doc.

Write a paragraph that describes aspects of the economic factors of production. In your paragraph, describe physical and human capital, making the difference between the two clear.

So there are two aspects, physical and human capital. A physical capital is the equipment used for goods and service. For example, a physical capital would be cash, real estate, equipment, and inventory. A human capital is the expertise, understanding, and experience owned by a single or large group of people, visioned based on their merits and cost to a company or country. For instance, a human capital would be education, experience, and judgement.

Create an oral presentation in which you explain the trade-offs that are involved in making personal economic choices and decisions. Define terms as you present them and tailor your presentation to your audience, pausing for questions and refocusing your points as necessary.

Trade offs are typically described as bartering a product, mainly as part of an agreement. For example, a trade off could be between the types of cars and trucks there are in the store. Even though the cars may be more expensive while the trucks are not or the trucks may be expensive and the cars may not. This all depends on the prices a specific product gives. There's also negatives and positives between the cars and trucks. Saying that cars are more expensive may be a negative thing just as if you were going to say that about trucks. This shows an example of what trade offs really are.