Economics - Unit 1

-The study of human efforts to satisfy unlimited wants and needs

-Economics is the study of choices

• Economics

• Land

• Trade-Off

• Opportunity Cost

How governments make decisions

• Economics

• Macroeconomics

• Microeconomics

Individual consumers, businesses, or organizations

• Economics

• Macroeconomics

• Microeconomics

Limited amounts of resources to satisfy unlimited wants and needs

• Economics

• scarcity

• Trade-Off

• Opportunity Cost

-Land

-Labor

-Capital

• Resources/Factors of Production

• scarcity

• Trade-Off

• Opportunity Cost

Natural resources used to make goods and services

• land

• labor

• capital

-Effort people devote to a task

-Usually involves compensation (payment)

• land

• labor

• capital

-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)

• land

• labor

• capital

An alternative we sacrifice to make a decision

• trade-offs

• opportunity cost

• scarcity

• efficiency

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

• trade-offs

• opportunity cost

• scarcity

• efficiency