The BIG Idea Explain why scarcity andchoice are basic problems in economics

Explain the significance of: economics, microeconomics, macroeconomics, scarcity, factors of production, land, labor, goods, services, capital, productivity, entrepreneurship, technology.

Making Distinctions Wants and needs are not always easy to separate. Identify each of the following as a want or a need, and tell why you made that choice.

The BIG Idea Explain why scarcity and choice are basic problems in economics.

Identifying Scarcity leads to economic choices. Give an example of an economic decision you made and what you gave up when you made your choice. Then think of a choice our country has made and what we may have given up in making that choice.

Microeconomics For every purchase you make, you affect the economy. List three items you bought recently. For each item, list three businesses that benefited from your purchase.

Choose the letter of the term that best completes each sentence. a. utilize b. focus c. alternative d. reveal e. analyze f. theory g. complex By making choices about what to buy, consumers what they value most.

Choose the letter of the term that best completes each sentence. a. utilize b. focus c. alternative d. reveal e. analyze f. theory g. complex Studying how people use limited resources to fulfill their unlimited wants is the of economics.

Choose the letter of the term that best completes each sentence. a. utilize b. focus c. alternative d. reveal e. analyze f. theory g. complex An economist might use an economic model to formulate a , or hypothesis, about some aspect of the economy.

Choose the letter of the term that best completes each sentence. a. utilize b. focus c. alternative d. reveal e. analyze f. theory g. complex Studying how people use limited resources to fulfill their unlimited wants is the of economics. Different societies might the same resource in different ways.

What is the difference between microeconomics and macroeconomics?

How does scarcity differ from a shortage?

Your friend says, I need some new clothes. Under what conditions would this be expressing a need? A want?

Complete the chart below by listing the four factors of production and an example of each.

What does making a trade-off require you to do?

If a person chooses to buy a pair of shoes instead of a new jacket, what does the jacket represent in economic terms?

What does a production possibilities curve show?

For what purposes do economists use realworld data in building models?

What do economists and other scientists call the educated guesses that they make and test?

When does an economist consider an economic model useful?

What is the opportunity cost of making 7 bookshelves with the time and wood available?

What must happen in order to move from point B to point C?

What would happen to the curve if the carpenter got sick for a couple of days or his wood supply was delivered a bit late? Why?

Point E represents an impossible situationthe carpenter would not be able to produce 6 bookshelves and 4 tables. Why?

The BIG Idea Imagine that the Guevara family buys a large piece of land suitable for growing grapes or oranges. They decide to ask an economist for advice about their options for turning the land into a money-making resource for the family. What are some examples of the kinds of hypotheses the economist might offer the family? Based on the economists hypotheses, how will the Guevaras know whether the economic decisions they make are right or wrong?

Study the cartoon on the right, and then answer the following questions. a. Who are the two men in the cartoon, and what transaction are they discussing? b. Why would the car pictured be exceptionally fuel efficient? c. What is the trade-off to which the man on the left is referring?