Economics - Unit 1 Week 1

Limited amounts of resources to satisfy unlimited wants and needs

THE FUNDAMENTAL PROBLEM IN ECONOMICS

• scarcity

• resources

• trade-offs

• opportunity costs

land, labor, capital

• Scarcity

• Opportunity Costs

• Resources (Factors of Production)

• Trade-Offs

all natural resources used to produce goods and services

• labor

• capital

• land

Human effort directed toward producing goods and services

• labor

• capital

• land

-Any human-made resource used to produce goods and services

-Capital can be physical (goods used to make other goods) or human (skills and knowledge people use to produce goods)

• labor

• capital

• land

What to produce? How to produce? For whom to produce?

• 3 basic questions

• scarcity

• economics

• capital

The study of how people seek to satisfy their needs and wants by making choices

• Economics

• scarcity

• trade-offs

• opportunity costs

an alternative that we sacrifice when we make a decision

• opportunity costs

• scarcity

• labor

• trade-offs

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

• opportunity costs

• economy

• trade-offs

• resources