4 Factors of

Production Economies Principles Definitions PPF

10 10 10 10 10

20 20 20 20 20

30 30 30 30 30

40 40 40 40 40

50 50 50 50 50

Question 1 - 10

• What are the 4 factors of production?

Answer 1 – 10

• (C.E.L.L.)– Capital – Entrepreneurship – Land – Labor

Question 1 - 20

• What are the two types of capital?

Answer 1 – 20

• Capital Goods (man-made)• Human Capital (the know-how)

Question 1 - 30

• How do Economists define “Land”?

Answer 1 – 30

• Not just Real Estate but also natural resources

Question 1 - 40

• The following could be factors of production:– Capital resources– Human resources – Natural resources

– True of False

Answer 1 – 40

• True

Question 1 - 50

• This term refers to a product’s usefulness.

Answer 1 – 50

• Utility

Question 2 - 10

• What is a mixed economy?

Answer 2 – 10

• A combination of a market and command economy.

Question 2 - 20

• The American economy is a.

Answer 2 – 20

• Mixed Economy

Question 2 - 30

• There are a few true market economies in the world.

• True of False

Answer 2 – 30

• False

Question 2 - 40

• Match the following economist with the type of economies they created

• Karl Marx Market • John Keynes Mixed• Adam Smith Command

Answer 2 – 40

• Karl Marx- Command• John Keynes- Mixed• Adam Smith- Market

Question 2 - 50

• The “invisible hand” refer to:

Answer 2 – 50

• The fact that individuals, pursuing their own self-interest, achieve the best good for all when operating in the market economy.

Question 3 - 10

• The heart of the economic problem is to:

Answer 3 – 10

• Allocate limited resources among unlimited uses.

Question 3 - 20

• What must be given up to gain a unit of a good is that good’s

Answer 3 – 20

• Opportunity cost

Question 3 - 30

• The circular flow model represents

Answer 3 – 30

• The resource and product markets

Question 3 - 40

• The goal of economic stability has two concerns:

Answer 3 – 40

• Full employment and stable prices

Question 3 - 50

• What would help a company improve efficiency?

Answer 3 – 50

• Introduce division of labor • Specialization • Advances in technology

Question 4 - 10

• Economists use the term allocation to refer to

Answer 4 – 10

• Deciding who gets good and services

Question 4 - 20

• Economics is primarily concerned with

Answer 4 – 20

• The allocation of scarce resources

Question 4 - 30

• Economics is the study of the relationship between

Answer 4 – 30

• People’s unlimited wants and their scare resources

Question 4 - 40

• Economic efficiency is making the best use of

Answer 4 – 40

• Scarce resources

Question 4 - 50

• What is specialization?

Answer 4 – 50

• individualized focus on one task

Question 5 - 10

• What can cause an outward shift on the PPF?

Answer 5 – 10

• Increase in resources or an advancement in technology

Question 5 - 20

• What is illustrated by the PPC

Answer 5 – 20

• All combinations of two goods that can be produced given current resources

Question 5 - 30

What does point x and y mean?

Answer 5 – 30

• Point X= inefficiency

• Point Y= unattainable/ impossible

Question 5 - 40As the economy moves from point D to E:

Answer 5 – 40

It gives up 3 units of guns and gains 1 unit of butter

Question 5 - 50

• Why might an economy produce at a level of output beneath its PPF?

Answer 5 – 50

• Resources or technology is not being used efficiently