Econ Unit 1 Review
Example:
Example:
Factors of Production
Example:
Example:
EXAMPLES OF SCARCE ITEMS:
Econ Unit 1 Review
FACTORS TO CONSIDER WHEN MAKING ECONOMIC DECISIONS:
1)
TRADE-OFFS:
Example:
2)
OPPORTUNITY COST:
Example:
3) THE LAW OF DIMINSIHING RETURNS:
4) MARGINAL UTILITY:
Econ Unit 1 Review
And don’t forget about:
Things You Need To Know About Labor and Human
Capital:
Productivity
Specialization
Division of Labor
TYPES OF ECONOMIC SYSTEMS:
COMMAND
ECONOMY
MARKET
ECONOMY
THE COMMUNIST MANIFESTO
WAS WRITTEN BY _________
AND ADVOCATED (SUPPORTED):
THE WEALTH OF NATIONS
WAS WRITTEN BY
______________ AND
ADVOCATED (SUPPORTED):
EXAMPLE:
EXAMPLE:
MIXED
ECONOMY
TRADITIONAL
ECONOMY
EXAMPLE:
MAY ALSO BE REFERRED
TO AS 3RD WORLD OR
DEVELOPING NATIONS
Econ Unit 1 Review
Other terms to study and know for the test
1. Economics (definition)
2. Microeconomics vs Macroeconomics
3. Scarcity
4. trade-offs
5. opportunity cost
6. The four factors of production
7. 3 Basic Economic questions
8. 4 Types of economic systems
9. Invisible hand
10. laissez faire
11. Characteristics of Market/Free enterprise system
12. Circular Flow Model
13. Productivity
14. How to increase productivity
15. Economic Interdependence
Essays – I will choose one and you choose another to write about.
16. What role does the concept of opportunity cost play in the decision to pursue post-secondary
(post-high school) education?
17. Traditional economics defines needs as things we have to have to survive and defines wants as
luxury things that are not necessary to survival. Why is this definition problematic in today’s
society? Give at least 2 examples.
18. Describe the characteristics of the four types of economic systems (traditional, command,
market, and mixed) and tell how they answer the basic economic questions.