Econ Chpt 1

The Social Science that describes the factors that determine the production, distribution and consumption of goods and service.

• Factors of Production

• Scarcity

• Opportunity Cost

• Economics

Resources used to make a good or service

• Scarcity

• Factors of Production

• Labor

• Economics

Comprises all naturally occurring resources whose supply is inherently fixed. Natural resources are fundamental to the production of all goods.

• Land

• Labor

• Human Capital

• Physical Capital

Study of economic behavior of employers and employees in response to changing prices, profits, wages, and working conditions

• Land

• Labor

• Human Capital

• Physical Capital

The fundamental human problem of having unlimited human wants in a world of limited resources

• Opportunity Cost

• Trade-Offs

• Economics

• Scarcity

A person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so.

• Labor

• Human Capital

• Entrepreneur

• Physical Capital

A balance achieved between many desirable but incompatible features; a compromise where ALL OTHER ITEMS were given up.

• Opportunity Cost

• Trade-Offs

• Scarcity

• Thinking at the Margin

The most desirable alternative given up as the result of a decision

• Opportunity Cost

• Trade-Off

• Scarcity

• Thinking at the Margin

Deciding whether to do or use one additional unit of some resource

• Opportunity Cost

• Trade-Offs

• Thinking at the Margin

• Scarcity

A factor of production consisting of machinery, buildings, computers, and the like

• Land

• Labor

• Human Capital

• Physical Capital