Which of the following situations is the best example of a positive consequence?
Read the passage below and answer the question that follows. Madison was chosen to star as Dorothy in her middle school's production of The Wizard of Oz. Her soccer practice is at the same time as the show’s scheduled rehearsals. Which of the following best describes Madison's opportunity cost if she decides to take the leading role?
Which of the following statements describe(s) most modern mixed economies? i. They use traditional methods to produce goods. ii. They have a level of government control. iii. They have a level of privatization.
Using complete sentences, explain the differences between a command economy and a market economy. What type of economic system is created when these two systems are combined? What are the benefits of combining these two systems?
Responses may vary but should include some or all of the following information: A command economy and a market economy are completely opposite economic systems. In a command market, the government controls everything. The government determines which goods and services they want the nation to produce. The government owns all capital used, including land, materials, machinery, and technology, and it decides who can use the goods and services produced. A command economy can provide economic equality and security to those who use it. A market economy is completely different. The goods and services produced in a market economy are determined by the consumers. All businesses belong to the private sector, which means that individuals own the business and capital. The goods and services produced are used by those who can afford them. Market economies are used because they can profit producers greatly and because competition creates progress. When these two types of economies are combined, a mixed economy is created. It has some privately owned businesses and some government businesses and regulations. Most modern economies are mixed economies to some degree. The benefits of using mixed economies include competition that ignites progress and government regulations that protect workers and try to provide some economic equality.
A pizza delivery restaurant’s physical capital would most likely include __________. i. a cheese-grating machine, an oven, and a delivery car ii. an accountant, a manager, and a pizza maker iii. customers, money, and profit
Using complete sentences, describe the central economic problem facing all humans. Why does this require people to make choices? How can this result in opportunity costs?
Responses may vary but should include some or all of the following information: The central economic problem facing all humans is scarcity. Scarcity occurs because there is a limited amount of resources, but people have unlimited wants. Because of this, it is necessary to make choices. People must decide how to use the resources that are available to them. Every choice comes with a cost. A cost is something given up as the result of a choice. In economics, costs are usually known as opportunity costs or the best alternative given up.
What are factors of production? Provide an example of each of the four factors of production. Make sure your answer is written in complete sentences.
Responses may vary but should include some or all of the following information: The factors of production are what a society uses to produce goods and services. This includes land, labor, capital, and entrepreneurship. Land includes all the natural resources people can use for business, such as soil, forests, water, and minerals. Labor is work done for pay, which is what a business’ employees do. Capital includes the things needed to produce good and services. Capital can be broken into two parts: physical capital (buildings, machinery, tools, etc.) and human capital (skills, experience, knowledge, etc.). The entrepreneur is the factor of production that brings all of the other items together. Entrepreneurs are people who start businesses and bring products to market.
Using complete sentences, compare and contrast a traditional economy and a command economy. Make sure to address the three economic questions and to provide at least one incentive for each.
Responses may vary but should include some or all of the following information: A traditional economy has very little in common with a command economy, except that both provide the incentive of security for those who use them. Everything else regarding the two economic systems is different. In a traditional economy, people use traditional methods to produce goods that have been made in the past. They produce them for their communities and family members. If they happen to produce too much of something (i.e. if they have a surplus), they can use those goods to barter or trade with other communities. This provides stability for the people. A command economy functions in a different manner. In a command economy, the goods and services produced are determined by the government. They produce what the government feels is best. The people use government-owned lands and machinery to produce goods, and the government decides who can use the goods produced. In other words, the government has full control and makes all the decisions. A command economy can also provide economic equality.
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