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Econ 1-2 Student Notes - Specialization & Trade

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Econ 1-2 Student Notes - Specialization & Trade

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STANDARD:
E.1.5 Use a production possibilities curve to explain the concepts of choice, scarcity, opportunity cost, trade offs, efficiency, productivity, and growth.
GE.8.2 Compare and contrast the arguments for and against free trade.
E.1.4 Define scarcity, and explain how choices incur opportunity costs, utility, and trade-offs. (E)
E.1.2 Identify incentives and explain how they influence economic behavior and decision-making.

Creada por

Lance Hiles
Lance Hiles
Estados Unidos

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Econ 1-2 Student Notes - Specialization & Trade
 

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Econ 1-2 Student Notes - Specialization & TradeVersión en línea

STANDARD: E.1.5 Use a production possibilities curve to explain the concepts of choice, scarcity, opportunity cost, trade offs, efficiency, productivity, and growth. GE.8.2 Compare and contrast the arguments for and against free trade. E.1.4 Define scarcity, and explain how choices incur opportunity costs, utility, and trade-offs. (E) E.1.2 Identify incentives and explain how they influence economic behavior and decision-making.

por Lance Hiles
1

The U.S. has limited resources, so they can't produce any combination beyond the production possibilities frontier, so it's _____ to produce 500 planes and 1000 tons of shoes.

2

International trade creates many horrible results, such as environmental damage, ____ ____ , and hazardous work environments. However, despite these results, trading goods between countries makes everyone involved better off.

  
  
3

So what is the value of the production possibilities frontier? The idea is once you understand that there's _____ between producing two goods, that same logic applies for any number of goods.

4

We need to understand the pros & cons of international trade, so we are not misled someone in the government tells us that doing business with other countries costs us ____ ____ .

  
  
5

The first graph in an economics textbook is the ____ ____ frontier, or PPF. The PPF shows the different combinations of two goods being produced using all resources efficiently.

     
  
  
6

When learning economics, it is best not to worry about _____ . Statistical graphs are simply a visual way to explain some new mental concept.

7

Next time we'll show you how some of these ideas get turned into ____ ____ and how these [same] contribute to the differences between countries.

  
  
8

The United States makes more ____ than any other country in the world, but it does not spend much time making footwear.

9

Specialization makes people more productive, but Adam Smith said _____ makes them better off. With [same], each country ends up with more pizza & shirts than making them on their own (or airplanes & shoes).

10

The U.S. should stick with airplane production because the U.S. is ____ ____ to make airplanes, opposed to shoes. This is the lesson that the production possibilities frontier teaches us.

  
  
11

The modern era has taken specialization to the extreme. Think of how many people from how many different specialized fields it takes to make _____ .

12

The main point of the production possibilities frontier is that the U.S. should focus on making airplanes, since the U.S. has a ____ advantage in this field, compared to other countries.

13

Due to ____ of ____ , an employee produces more goods because they specialize in a task, working on one aspect of the product, instead of moving between all aspects of the product.

  
  
14

Looking at a production possibilities frontier graph, we see the U.S. can produce more planes than China, they have an ____ ____ in the production of planes. The US also has an [same] in the production of shoes.

  
  
15

Adam Smith wrote a book called the Wealth of Nations, in which he explained that the U.S. became rich due to _____ , which is a manufacturing technique used in factories

16

Looking at a production possibilities frontier graph, we see that every possible combination inside the curve is inefficient, and on the curve is _____ , and outside the curve is impossible.

17

Increasing our ____ ____ made it possible for people to live longer, & which increased the total number of people on the planet. This was all due to mechanization and technology in the early 1900s.

  
  
18

If American companies mismanage their resources and try to produce planes in shoe factories and shoes in plane factories? Well, they'd be at a point inside the production possibilities frontier, showing an _____ use of resources.

19

Researching the history of infant death and ____ ____ , we see that, until the last one hundred years, people lived short and miserable lives.

  
  
20

Economics is the study of how people choose between two options. The process of choosing is important, because there are ____ ____ in the world, a concept economists call scarcity.

  
  
 
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