Econ Unit 1 - Fundamental Economic Concepts

What are land resources?

• Factories, equipment, and machinery used for production

• Money in banks used for business investment

• Soil, mineral deposits, forests and other raw materials

• Workers and managers who produce goods & services

What is opportunity cost?

• Monetary price of any productive resource

• Amount of labor needed to produce one unit of a product

• Amount of one product that must be given up to produce one more unit of another product

• Ratio of the prices of imported goods to the prices of exported goods

Competition & free enterprise are most common in which type of economic system?

• Traditional

• Market

• Command

• Socialist

When a society uses methods of exchange like barter, lottery, rationing or prices, what are they attempting to do?

• Reduce productivity

• Develop new technology

• Allocate scarce resources

• Create a safety net for the poor

In economics, resources are: 

• Anything used to create something else
• The environment in general
• Specifically lumber and water
• Capital only

Resources (a.k.a. the factors of production are)

• Land and Labor
• Land and Capital 
• Entrepreneurship
• Land, Labor, Capital and Entrepreneurship

Tools

• Land
• Labor 
• Capital
• Entrepreneurship

Workers

• Land
• Labor 
• Capital
• Entrepreneurship

Raw materials (i.e. cotton, oil...etc.)

• Land
• Labor 
• Capital
• Entrepreneurship

The people who bring all the factors together to create something are practicing

• Land
• Labor 
• Capital
• Entrepreneurship