The student will explain how specialization and voluntary exchange between errs and sellers increase the satisfaction of both parties. A. Give examples of how individuals and businesses specialize. B. Explain that both parties gain as a result of voluntary, non-fraudulent exchange. JOSEF The student will compare and contrast different economic systems and explain how they answer the three basic economic questions of what to produce, how to produce, and for whom to produce. . Compare command, market, and mixed economic systems with regard to private ownership, profit motive, consumer sovereignty, competition, and government regulation.
B. Evaluate how well each type of system answers the three economic questions and meets the broad social and economic goals of freedom, security, equity, growth, efficiency, and stability. JOSEF The student will describe the roles of government in a market economy. A.
Explain why government provides public goods and services, redistributes income, protects property rights, and resolves market failures. B. Give examples of government regulation and deregulation and their effects on consumers and producers.
JOSEF The student will explain how productivity, economic growth, and future tankards of living are influenced by investment in factories, machinery, new technology, and the health, education, and training of people. A.
Define productivity as the relationship of inputs to outputs. B. Give illustrations of investment in equipment and technology and explain their relationship to economic growth. C. Give examples of how investment in education can lead to a higher standard of economics By electromagnetism Specific content/skills tested on this test that are included but not limited to: Assessment of this domain will focus on the following: – importance of scarcity to the study of economics limited vs.
. Unlimited resources – differences between economic wants and economic needs – importance and characteristics of natural, human, and capital resources – role of entrepreneurs in production and distribution – reading and interpreting scenarios, tables, production possibility curves, and graphs related to opportunity costs (trade offs) – reasons for and significance of specialization – identifying and analyzing examples of specialization – reasons for and benefits of voluntary exchange – effects of investments in capital and human resources on productivity, economic Roth – economic systems – specialization and voluntary exchange -marginal analysis and rational decision-making – role of government in a market economy -productivity, economic growth and future standards of living JIFFIES The student will explain why limited productive resources and unlimited wants result in scarcity, opportunity costs, and tradeoffs for individuals, businesses, and governments. 1. What is scarcity? Scarcity is a decrease in limited resources while the demand is rising 2. Why does scarcity exist? Scarcity happens when unlimited wants outweighs the limited resources 3. Why is scarcity the fundamental problem of Economics?
It helps economist find efficient ways to propagate these problems and scarcity 4. Define and give an example of each of the four factors of production: Factor of Production Definition Example Capital Any resource necessary to produce a good. Machines, Building, Trucks(transportation) Leaders who take the risk of management and financial issues of a business Coos, President of a company Labor A person who has the mental and physical ability to do work Employee Land Where all of our natural resources come from Wood, Water, Stone 5. What is the difference between human capital and physical capital? Human capital is the labor required to directly contribute to the production of the good.
Physical capital is the contribution of inanimate objects in the production of a good. 6. Define the word allocation: Setting things apart for a special purpose 7. Give an example of each of the following allocation strategies: Allocation Strategy Everyone Shares Rationing to make sure that everyone has the same amount Price Raising the price to see who want it the most Authority When a head of a business decides to make an allocation Merit/Personal Characteristic Giving materials to people who are physically challenged or have disability issues First Come, First Serve Random Selection Lottery, Auction 8. Describe which allocation strategy you think is most fair? Most efficient (uses resources wisely)?
I say lottery and Rationing is the most fair because it gives anyone a chance to get something. 9. What is the definition of opportunity cost? The next best thing you had but traded-off to do the other. 10. Imagine that this morning you had a choice between riding the bus to school or driving your car. You chose to ride the bus. What benefits of driving the car did you give up by taking the bus? (This represents the value of your next best alternative. ) I could’ve listened to music on the radio, and left my home at what any time I wanted. 1 . Use the production possibilities curve below to answer the questions. What is the maximum number of cakes this country can make? 5 cakes What is the maximum number of pies this country can make? 0 pies What combination of cakes and pies can be produced at Choice D? 2 cakes and 6 pies What is the opportunity cost of choosing Choice E over Choice D? You could’ve had 1 ore unit of cake but lost 2 units of pies What is the marginal benefit of choosing Choice E over Choice D? You get more units What does the production possibilities curve represent for this country? The most efficient the country can make with their limited resources Use the production possibilities curve below to answer the questions. How would you describe Superman’s production at each of the following points? Point A? He is efficient at 4 Brownie points and bagging 3 criminals Point B?
He is inefficient and having a bad day at 3 Brownie points and snagging only 2 criminals Point C? That would stretch Superman’s time making it unattainable What could have caused Spenserian to produce at point B? He could’ve got sick or his aunt was around What must Spenserian do to produce at Point C? He should quit the newspaper team to have more time to do that stuff… 2. Answer the following questions about marginal benefits and marginal costs. A. What does marginal mean? Additional b. Why do economists make choices at the point where marginal benefits are equal to the marginal costs? It will give u the maximum possible profit. If either one is higher, u r not using our resources effectively.
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