Review - Scarcity, Opportunity Cost, & Factors of Production

The resources used to make all goods & services are called

• Natural Resources

• Factors of Production

• Goods & Services

• Renewable Resources

What is an Entrepreneur?

• A person who risks their own time and money to start a business

• The money a business makes from selling their goods and services

• Revenue

• Profit

Any technology/machinery involved in the production process:

• Human Capital
• Physical Capital
• Investment Capital
• Enterprise Capital

An individual's knowledge or skills that make production of a good/service more efficient

• Human Capital
• Physical Capital
• Investment Capital
• Enterprise Capital

What is an economic want?

• Things people need in order to survive.

• Goods/services that people would like to have.

• Things people don't want anymore.

• Tangible goods that people must have.

Scarcity is defined as a limited supply of resources versus...

• limited wants for those resources

• unlimited resources

• limited resources

• unlimited wants/needs

What are all societies forced to do because of scarcity?

• Make production decisions

• Conserve resources

• Limit resource use

• Charge large amount of money for available resources

An action that one provides for someone else is a.... (hint: haircuts, counseling, or babysitting)

• Job

• Good

• Service

• Factor of Production

A Trade-off is

• a purchase in a marketplace.

• any/all alternative(s) that we sacrifice when we make a decision.

• any good or service a consumer needs.

• a factor of production.

What name is given to the value of the next best alternative that you give up when you make a decision? We have referred to this as the "cost of choosing."

• Trade-offs

• Opportunity cost

• Lost opportunities

• Options