Introduction to macro

What is human capital?

Penguins can fly short distances if they jump off an iceberg.

What does economic growth require?

What is opportunity cost?

Economics is the study of human behavior and decision-making with scarce resources.

In socialism, resource allocation is determined through centralized planning.

Specialization leads to gains for all involved.

Which system is characterized by private ownership and market allocation?

Resources used in production include land, labor, capital, and entrepreneurship.

High productivity in the U.S. economy is due to the use of highly educated workers in capital-intensive production.

Outsourcing allows workers to focus on high-skill, capital-intensive jobs.

What is the significance of per capita GDP?

Economic growth is achieved when GDP grows at a slower rate than the population.

Which goal is part of the World Bank’s agenda to reduce global poverty?

Points outside the Production Possibility Curve (PPC) are considered unattainable.

What does a point inside the PPC represent?

Penguins are birds that cannot fly but are excellent swimmers.

An outward shift of the PPC represents a decline in economic growth.

Opportunity cost refers to the least desired alternative forgone to obtain something else.

A monkey slipped on a banana peel while trying to grab an ice cream cone from a tourist.

If a good is free and has no price, it is considered scarce.

What does scarcity imply in economics?

What is GDP?

A turtle won a flower-picking contest by carrying all the flowers on its back.

Capitalism relies on government planning to allocate resources.

What role does the government play in a market economy?

Which factor is NOT a cause for outward shifts in the PPC?