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Unit One – The Introduction to Economics

Unit One – The Introduction to Economics . The Third Quiz Review! . How does specialization help our economy? . How does specialization help our economy? .

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Unit One – The Introduction to Economics

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  1. Unit One – The Introduction to Economics The Third Quiz Review!

  2. How does specialization help our economy?

  3. How does specialization help our economy? Specialization allows us to focus on just a few skills, so we get good at them, and it makes our economy more efficient…it runs better.

  4. What is capitalism?

  5. What is capitalism? The means of production are privately owned. The fundamental questions of what, how and who are answered by the market, rather than the government.

  6. What’s Freedom of Enterprise?

  7. What’s Freedom of Enterprise? You can begin any legal business and conduct it as you see fit. (no meth labs in your basement – even if it is your home).

  8. Explain Eminent domain…

  9. Explain Eminent domain… The government is allowed to take your property for public use, but they have to pay your fair market value for your property.

  10. What is the Profit Motive?

  11. What is the Profit Motive? The willingness of an entrepreneur (business owner) to risk financial loss by organizing and launching a business enterprise.

  12. What does scarcity mean?

  13. What does scarcity mean? It means that in the world, we have limited resources – we will always have limited time and resources. Scarcity exists in nature. Shortages are our own fault.

  14. What is money?

  15. What is money? A medium of exchange accepted by all payment as legal tender, bird feathers, gold, stamped images on zing slugs…

  16. Ceteris Paribus means…

  17. Ceteris Paribus means… “All things being equal” – allows economists to look at economic issues while still recognizing the idea that other variables exist.

  18. What is macroeconomics?

  19. What is macroeconomics? The study of the impact of changes on the economy as a whole. “What would be the effect of a tax increase on consumer spending?” for example.

  20. What are the fundamental questions of economics?

  21. What are the fundamental questions of economics? What goods and services does our economy provide? How do we combine the factors of production? Who gets to have those goods that we produce?

  22. What does competition do for the market place and our lives?

  23. What does competition do for the market place and our lives? It makes our lives better by forcing business firms to compete for our dollars by providing better goods and services and lower prices.

  24. What is the circular flow of economic activity?

  25. What is the circular flow of economic activity? Of course, don’t forget the Government and Taxes!

  26. The End

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