Economics (H) Chapter 1 Review Game Factors of Production Production Possibilities Goods & Services Productivity & Growth Value & Wealth MISC 10 20 30.

Economics (H)

Chapter 1

Review Game

Factors of Production

Production Possibilities

Goods & Services

Productivity & Growth

Value & Wealth

MISC

10 10 10 10 10 10

20 20 20 20 20 20

30 30 30 30 30 30

40 40 40 40 40 40

50 50 50 50 50 50

60 60 60 60 60 60

70 70 70 70 70 70

80 80 80 80 80 80

90 90 90 90 (90) 90

100 100 100 100 (100) 100

A1

List all four Factors of Production:

LAND, LABOR, CAPITAL, and

ENTREPRENEURS

A2

Equipment used in production.

CAPITAL

A3

Human resources that serve as productive contributions in the

economy.

LABOR

A4

Encompasses all the non-human gifts of nature,

including timber, water, fish, and fertility.

LAND

A5

Involves human resources that perform the functions of

organizing, managing, and assembling the other factors of production to make business

ventures.

Entrepreneur

A6

Why are Entrepreneurs so vital to a

Free Enterprise Economy?

They bring new products and production methods.

A7

The money used to buy the tools and equipment used

in production.

Financial Capital

A8

A9

A10

B1

A diagram representing various combinations of goods and/or

services an economy can produce when all productive resources are

fully employed.

PPF

B2

Draw a Production Possibilities Frontier

on the board

Label all parts.

B3

Production Possibilities Frontier

Fully Employed Resources?

A

B

C

B

B4

Production Possibilities Frontier

A

B

C

Cost of Idle Resources?

A

B5

B6

Production Possibilities Frontier

A

B

C

Impossible Production?

C

B7

Production Possibilities Frontier

Economic Growth (Draw)

2nd Line

B8

Production Possibilities Frontier

W

Opportunity Cost of W to Z?1 more B – 5 less A

Z

10

5

A

B1 2

B9

Production Possibilities Frontier

W

Opportunity Cost of Z to W?5 more A – 1 less B

Z

10

5

A

B1 2

B10

C1

Economic product that is economically useful or satisfies an economic

want.

GOOD

C2

Economic product that is performed for someone

SERVICE

C3

Markets where producers sell their goods and

services to consumers.

Products Market

C4

Any good that lasts less than three years.

Non-Durable

C5

Good that is intended for final use by an individual.

Consumer Good

C6

Any good that lasts more than three years.

Durable

C7

Good that is used to produce other goods and

services.

Capital Good

C8

Person who uses goods and services to satisfy wants

and needs

Consumer

C9

Provide an example of a CAPITAL GOOD:

Answers will vary

C10

D1

Measure of the amount of output produced by a given

amount of inputs in a specific period of time.

Productivity

D2

This occurs when a nation’s total output of goods and

services increases over time.

Economic Growth

D3

In order to increase productivity, what must

happen first?

Improve Efficiency (More Output with same Input)

D4

If you were a manager in a factory, what might be two

ideas to improve productivity? (2)

Division of Labor or Specialization

D5

This takes place when factors of production perform tasks relatively more efficiently.

Specialization

D6

This takes place when work is arranged so that individual workers do

fewer tasks than before.

Division of Labor

D7

In order to improve productivity, what can a

business do?

Offer job training and motivation

D8

Markets where productive resources are bought

and sold.

Factors Market

D9

The sum of the skills, abilities, health, and

motivation of people.

Human Capital

D10

E1

Refers to a worth that can be expressed in dollars and cents.

VALUE

E2

The capacity to be useful and provide satisfaction.

UTILITY

E3

The accumulation of those products that is tangible,

scarce, useful, and transferable from one person to another.

WEALTH

E4

What impact does SCARCITY have on

VALUE?

The more scarce, the higher the value

E5

Explain why the price of a necessity like water is

so low:

Even though a necessity, water is NOT scarce.

E6

Explain: The Paradox of Value

Some necessities have little monetary value, while some non-necessities have a high

monetary value.

E7

In order for an item to have VALUE, what must

it have?

Must be both Scarce and have Utility.

E8

What is the difficulty in measuring UTILITY?

The utility of a good will vary from one person to another.

E9

E10

F1

Basic requirement for survival and includes

food, clothing, and shelter.

NEED

F2

A way of thinking about a problem that compares the costs of an action to

benefits received.

Cost-Benefit Analysis

F3

Study of how people try to satisfy what appears to be seemingly unlimited wants

with limited resources.

Economics

F4

Alternative Choices

Trade-Offs

F5

The dollar value of all final goods and services produced within a country’s borders

in a year.

Gross Domestic Product

F6

All parts of the economy rely on each other for

success or failure.

Economic Interdependence

F7

The cost of the next best alternative use of money,

time, or resources when one choice is made rather than

another.

Opportunity Cost

F8

An economy in which consumers and privately owned

businesses, not government, make the decisions.

Free-Enterprise Economy

F9

The quality of life based on the possession of the

necessities and luxuries that make life easier.

Standard of Living

F10

Interpreting Maps

Interpreting Maps