1.1 What is economics

Condition that results in society not having enough resources.

• Scarcity

• Need

• Want

• Capital

Study of how people try to satisfy seemingly unlimited and competing wants through the careful use of relatively scarce resources.

• Labor

• Gross Domestic Product

• Economics

• Microeconomics

A basic requirement such as food.

• Need

• Want

• Land

• Capital

Simply something we would like to have but is not necessary for survival.

• Need

• Want

• Land

• Capital

Resources required to produce the things we would like to have, are land, capital, labor, and entrepreneurs

• Capital goods

• Labor

• Capital

• Factors of production

Natural resource not created by people

• Labor

• Capital

• Land

• Entrepreneurship

The tools, equipment, machinery, and factories used in the production of goods and services.

• Land

• Labor

• Capital

People with all their efforts, abilities, and skills

• Land

• Labor

• Capital

A risk- taker in search of profits who does some- thing new with existing resources

• Laborer

• Capitalist

• Entrepreneur

The dollar value of all final goods, services, and structures produced within a country’s borders in a 12-month period

• Capital

• Gross Domestic Product

• Possibility production frontier

• Labor