AP economic 1/8

01/8/15

Scarcity- Most fundemental economic probelm that all societies face." trying to satisfy unlimited wants, with limited resources" Permanent. 

Shortage- Quantity demanded is greater than quantity supplied . Temporarily shortage

Goods- Tangible commotie . 2 types of good "consumer vs Capital"

Consumer goods- Goods that are intended for final use by the consumer 

Capital goods- Items used in the creation of other goods .

Services- Work that is performed for someone else 

Factors of Production- 4 types, 

Land " Natural Resources"

Labor " Workforce"

Capital " Human Capital and Physical capital" 

Entrepreneurship- Innovative, Risk taker 

Human Capital- Any knowledge or skills gained through education and experience

Physical Capital- Human made objects used to create other goods and services 

Tradeoffs- Alternatives that we give up, when we choose one course of actions over another.

Opportunity Cost- Most desirable alternative given up by making a decision. " Given up on all option but you have to get something else"

Guns Or Butter- Where does the government spends its money. How are we allocating our resources.

Production Possibility Graph- Alternatives ways to use resources.

*Put a Graph In*

The curve is the - PPC or Frontier

The Graph-

A- We are efficient, and attainable. Making Both =

B- Efficient, Producing more cars 

C- Efficient, Producing more Trucks

"ABC all on the curve, meaning their efficient"

D- Under utilization, not employing all of our resources, attainable, but inefficient. " Inside of the curve. Caused by, depression, war and famine, underemployment and unemployment, down in population".

E- Unattainable, "outside of the curve", why we are? Economic Growth, Technology,  Discover New Resources.

01/8/15

Scarcity- Most fundemental economic probelm that all societies face." trying to satisfy unlimited wants, with limited resources" Permanent. 

Shortage- Quantity demanded is greater than quantity supplied . Temporarily shortage

Goods- Tangible commotie . 2 types of good "consumer vs Capital"

Consumer goods- Goods that are intended for final use by the consumer 

Capital goods- Items used in the creation of other goods .

Services- Work that is performed for someone else 

Factors of Production- 4 types, 

Land " Natural Resources"

Labor " Workforce"

Capital " Human Capital and Physical capital" 

Entrepreneurship- Innovative, Risk taker 

Human Capital- Any knowledge or skills gained through education and experience

Physical Capital- Human made objects used to create other goods and services 

Tradeoffs- Alternatives that we give up, when we choose one course of actions over another.

Opportunity Cost- Most desirable alternative given up by making a decision. " Given up on all option but you have to get something else"

Guns Or Butter- Where does the government spends its money. How are we allocating our resources.

Production Possibility Graph- Alternatives ways to use resources.

*Put a Graph In*

The curve is the - PPC or Frontier

The Graph-

A- We are efficient, and attainable. Making Both =

B- Efficient, Producing more cars 

C- Efficient, Producing more Trucks

"ABC all on the curve, meaning their efficient"

D- Under utilization, not employing all of our resources, attainable, but inefficient. " Inside of the curve. Caused by, depression, war and famine, underemployment and unemployment, down in population".

E- Unattainable, "outside of the curve", why we are? Economic Growth, Technology,  Discover New Resources.