Chapter 1 I2B

Things that are required in order to live

• want

• need

• good

• service

Things that add comfort and pleasure to your life

• want

• need

• good

• service

Things that you can see and touch

• want

• need

• good

• service

activities that are consumed at the same time they are consumed

• want

• need

• good

• service

The means through which goods and services are produced

• Economic resources

• Capital resources

• Human resources

• Natural resources

Raw materials supplied by nature

• Economic resources

• Capital resources

• Human resources

• Natural resources

People who produce goods and services

• Economic resources

• Capital resources

• Human resources

• Natural resources

Products and money used in the production of goods and services

• Economic resources

• Capital resources

• Human resources

• Natural resources

mismatch of unlimited wants and needs and limited economic resources

• opportunity cost

• scarcity

• basic economic problem

• trade off

not having enough resources to satisfy every need

• opportunity cost

• scarcity

• basic economic problem

• trade off