Partner Check Up

1. Partner Check Up • Capital • Economics • Labor • Scarcity • Value • Wealth • Worth that can be expressed in dollars and cents • Study of how people try to satisfy their needs through the use of scarce resources • Tools, equipment, machinery, and factories used in the production of goods and services • Conditions of not having enough resources to produce all the things people want • Goods used to produce other goods • Sum of products that are tangible, scarce, useful and transferable • People with all their efforts, abilities and skills

2. C • B • G • D • A • F

3. Partner Check Up • Adam Smith • Good • Human capital • Market • Productivity • Service • Tangible item that is useful • Work that is performed for someone • Basic requirement for survival • Location that allows buyers and sellers to exchange goods and services • A measure of the amount of output produced with a given set of resources in a specific time period • The sum of the skills, abilities, health, knowledge and motivation of people • Believed labor to be the most important F.O.P.

4. G • A • F • D • E • B

5. Partner Check Up • Capital Good • Division of Labor • Opportunity Cost • Paradox of value • Production Possibilities Frontier • Contradiction of high monetary value of nonessential item and low monetary value of essential item • Computer used in the classroom • Assembly line factory • The cost of the next best alternative • A tool that can be used to help make an economic decision by identifying alternatives • Diagram representing various combination of goods and services an economy can produce

6. B • C • D • A • F

7. Partner Check Up • A model • Economic Interdependence • Free Enterprise Economy • Gross Domestic Product • Standard of Living • Economy where consumers and privately owned businesses answer the 3 basic economic questions • Quality of life based on ownership of wants and needs • Something economists use to help make decision • Describe, Analyze, Explain, Predict • Peoples’ reliance on won another to provide goods and services • Sum of goods and services produced by a country in one year’s time

8. C • E • A • F • B

9. Claim: Adam Smith believes a nation’s people is it’s most important source of wealth. Read Wealth on page 14

10. Claim: Adam Smith believes a nation’s people is it’s most important source of wealth “When Adam Smith published his famous book The Wealth of Nations in 1771, he was referring specifically to the abilities and skills of a nation’s people as the source of its wealth.”(14) “If a country’s material possessions were taken away, its people, through their efforts and skills, could restore these possession.” (14) “If a country’s people were taken away, its wealth would deteriorate.” (14)

11. Claim: Cost measured in dollars alone is an insufficient measure of value. Read: Opportunity Cost on page 20

12. Claim: Cost measured in dollars alone is an insufficient measure of value. “Every decision we make has its trade-offs.” (20) “Even time has an opportunity cost although you cannot always put a monetary value on it.” (20) “…each item has advantages and disadvantages. Some of the items can be used more than once, and some might require his parents’ consent. Some even have additional costs such as batteries.” (20)

13. Think about it? • Why doesn’t your family make its own shoes or its own dishwasher? • Give a minimum of 3 good reasons. • You know who else said that? • Adam Smith: When Adam Smith talked about the concept of specialization he was saying it makes nosense to make something at home that you could get cheaper in the market place.

14. Review • Page 29 #34 • Page 29 #36 • Page 28 #1-10 • Page 29 #30 • Advanced Students: • Questions 18, 22, 23, 24, 26