TEST: Basic Economic Principles: January 18

Review Study Guide
Short Answer
115 Points

Economics

Study Guide

Terms to Know

1. microeconomics
2. macroeconomics
3. capital good
4. want versus need
5. scarcity
6. Four Basic Factors of Production
1. land
2. labor
3. capital
4. entreprenurship
7. specialization
8. division of labor
9. opportunity cost
10. opportunity benefit
11. absolute advantage
12. comparative advantage
13. Three basic questions due to scarcity
14. value
15. paradox of value
16. utility
17. wealth
18. production possibilities curve
19. efficiency
20. incentive

Blood Diamond Essay - 100 Points

Essay/Summary:   Due Tuesday 1-1/2 pages

After viewing the video, “Blood Diamond”, write a summary/explanation of the video using the following economic terms;

-         Land                                      

-         Labor                                                                 

-         Capital                                                                

-         Entrepreneurship                                     

-         paradox of value

    - wants                               

    - opportunity cost

     - needs 

     - wealth

     - scarcity

     - utility

     - limited resources

     - comparative advantage

Your essay should be logical and clear enough so that the reader understands the context of the movie based on the economic terms above. Give examples and background information (contextualize) for each term. Use your notes and our discussions in class to help you.