So let’s practice!Apple has $10,000 left and has to decide to make iPods or Mac Computers:

Point iPods MacsA 20 0B 18 1C 15 2D 11 3E 6 4F 0 5

How might this PPC look?

2

5 18

Calculate the opportunity costs for iPods going from

Point A to B,Point D to E, &Point B to F.

0 1

8

4

065432

16

12

20

7

iPods

Macs

F

E

B

A

D

C

THIS PRESENTATION HAS BEEN FORMATTED FOR YOUR TEST REVIEW:

LACK OF STUDYING FOR THE TEST WILL RESULT IN ALEX TREBEK BEING DISAPPOINTED IN YOU… TRUST ME,

YOU DO NOT WANT THAT TO HAPPEN

THIS IS…

JEOPARDY RULES

• You will be divided into three teams.• Each member of the team will take

turns giving the solution.• Once your host finishes reading the

answer, the first person to raise their hand gets to state the answer for their team!

• The team with the most points in the end gets 5 bonus points; 3 bonus points for the team in second and 1 bonus point for third place.

http://rubbercat.net/mt/2012-06/

LABORMARKET

UNEMPLOYMENTLABOR UNIONS

ECONOMIC THEORY

OPPORTUNITY COST

It is the minimum wage in the U.S. right now.

$7.25

The Labor Market $200

It is a program that enables women and minority groups to attain equality

in employment, education and business.

Affirmative Action

The Labor Market $400

It includes all people that are employed and unemployed.

Labor Force or Workforce

The Labor Market $600

How wages are determined; The wage at which workers needed equals the

number of workers available.

Equilibrium Wage

The Labor Market $800

The workers’ point of view of labor; the skill and experience of the workers

will affect their wages.

Supply of Labor

The Labor Market $1,000

It is the percentage of the workforce that is jobless but has been actively

looking for work within the last month.

The Unemployment Rate

Unemployment $200

Unemployment due to seasonal work.

Seasonal Unemployment

Unemployment $400

It is the temporary unemployment of workers going from one job to the

next.

Frictional Unemployed

Unemployment $600

People that are working in a job that’s below their skill level.

Underemployment

Unemployment $800

Under this government report, part time workers looking for full-time work

would be included in the unemployment count.

(But they aren’t!!)

U6

Unemployment $1,000

This occurs when workers as a unit refuse to work…

A Strike

Labor Unions $200

Michigan became the 24th state to pass this law in which workers do not have

to join a union.

The Right to Work Law

Labor Unions $400

It’s a business in which an employer can only hire union workers.

Closed Shop

Labor Unions $600

It’s the process of negotiation between businesses and the organized employees

to establish wages and improve work conditions.

Collective Bargaining

Labor Unions $800

This New Deal legislation set a minimum wage, required overtime pay

for workers and banned child labor.

The Fair Labor Standards Act

Labor Unions $1,000

Food, water, shelter and clothing are all types of this.

Needs

Economic Theory $200

It’s the type of economics that looks at individuals, families and businesses.

Microeconomics

Economic Theory $400

It’s the benefit or satisfaction that you gain from use of a good or service.

Utility

Economic Theory $600

A person who makes goods is known as this.

A Producer

Economic Theory $800

This factor of production includes all physical resources made/used by

people to produce and distribute goods and services.

Capital

Economic Theory $1,000

It’s when we have to give up something when making a choice.

A Trade-Off

Opportunity Costs $200

This law states that your utility will decrease as each additional unit is

consumed.

Law of Diminishing Returns(Marginal Utility)

Opportunity Costs $400

It’s a process of analyzing the advantages and disadvantages of each

available alternative to reach a decision.

Cost-Benefit Analysis

Opportunity Costs $600

It’s a trade off (the next best alternative) that has been given a

value.

Opportunity Cost

Opportunity Costs $800

This is represented by the greatest combination of 2 goods a company can

produce given the limits of the industry.

The Production Possibility Curve

Opportunity Costs $1,000

PPF

Draw a PPC for the following table ANDdetermine the opportunity cost for

computers.

PRODUCTION POSSIBILITY FRONTIER

Point Fighter Jets Computers (in thousands)

A 0 1,000

B 2 900

C 4 700

D 7 450

E 8 200

F 10 0

The U.S. government has $1 billion dollars to spend on either F-35 fighter jets or computers for schools…

Calculate the opportunity costs for computers going from

Point A to B,Point D to E, &Point C to F.

100

250 700

0 200

4

2

01,2001,000800600400

8

6

10

Fighter Jets

Computers (in thousands)

PPC - EFFICIENCY

UNDERUTILIZATION

IMPOSSIBILITY