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How does scarcity apply to time management?
Time is a limited resource, so we must make choices about how to allocate it.
How does opportunity cost apply to choosing between college and a job?
The opportunity cost of college is the income you could have earned from a job.
How does comparative advantage explain international trade?
Countries specialize in producing goods where they have a comparative advantage and trade with others.
How does increased demand for electric cars affect equilibrium?
Increased demand leads to a higher equilibrium price and quantity of electric cars.
How does scarcity affect a consumer's decision to buy a new phone?
Scarcity of income forces the consumer to consider the opportunity cost of buying the phone.
How does opportunity cost relate to government spending decisions?
Every government spending decision involves an opportunity cost of what else could have been funded.
How does comparative advantage influence career choices?
Individuals often pursue careers where they have a comparative advantage, maximizing their potential earnings.
How does supply and demand affect the price of concert tickets?
High demand and limited supply can drive up the price of concert tickets.
How does equilibrium relate to housing prices?
Equilibrium in the housing market determines the price and quantity of houses sold.
Explain how scarcity affects healthcare resource allocation.
Due to limited resources, healthcare systems must make choices about which treatments and services to provide.
What are the differences between absolute and comparative advantage?
Absolute advantage is producing more with the same resources; comparative advantage is producing at a lower opportunity cost.
Differentiate between a change in demand and a change in quantity demanded.
Change in demand is a shift of the entire curve; change in quantity demanded is a movement along the curve due to a price change.
Differentiate between a change in supply and a change in quantity supplied.
Change in supply is a shift of the entire curve; change in quantity supplied is a movement along the curve due to a price change.
What is the difference between microeconomics and macroeconomics?
Microeconomics studies individual decisions; macroeconomics studies the economy as a whole.
What is the difference between positive and normative economics?
Positive economics is objective and fact-based; normative economics is subjective and value-based.
Compare and contrast a market economy and a command economy.
Market economy relies on supply and demand; command economy relies on central planning.
What are the differences between short-run and long-run in economics?
Short-run has fixed factors of production; long-run allows all factors to vary.
Compare and contrast efficiency and equity in economics.
Efficiency is optimal resource allocation; equity is fairness in distribution.
What is the difference between consumer goods and capital goods?
Consumer goods satisfy immediate wants; capital goods are used to produce other goods.
Compare and contrast economic growth and economic development.
Economic growth is an increase in output; economic development is broader improvement in living standards.
What are the differences between absolute and comparative advantage?
Absolute advantage is about producing more with the same resources; comparative advantage is about producing at a lower opportunity cost.
What are the differences between explicit and implicit costs?
Explicit costs involve direct payments; implicit costs are opportunity costs of using resources.
What are the differences between productive and allocative efficiency?
Productive efficiency is producing at the lowest cost; allocative efficiency is producing the optimal mix of goods.
What are the differences between a free market and a command economy?
Free market relies on individual decisions; command economy relies on government control.
What is the difference between physical and human capital?
Physical capital refers to machinery and tools; human capital refers to skills and knowledge.
Differentiate between scarcity and shortage.
Scarcity is a fundamental condition of limited resources, while a shortage is a temporary lack of a good at a specific price.
What is the difference between microeconomics and macroeconomics?
Microeconomics studies individual decisions, while macroeconomics studies the economy as a whole.
What is the difference between normative and positive economics?
Positive economics is based on facts and cause-and-effect relationships, while normative economics incorporates subjective value judgments.
Differentiate between economic efficiency and equity.
Economic efficiency focuses on maximizing output from resources, while equity concerns the fair distribution of resources and outcomes.
What is the difference between a good and a service?
A good is a tangible item that satisfies a want, while a service is an intangible act that satisfies a want.