Basic Economic Principles

What is scarcity?

• The relationship between unlimited wants and limited resources.

• Things that people must have to live

• What people would like to have

• What people give up when they make a choice to have one want satisfied.

What is a want?

• The relationship between unlimited wants and limited resources.

• Things that people must have to live

• What people would like to have

• What people give up when they make a choice to have one want satisfied.

What is a need?

• The relationship between unlimited wants and limited resources.

• Things that people must have to live

• What people would like to have

• What people give up when they make a choice to have one want satisfied.

What is opportunity cost?

• The relationship between unlimited wants and limited resources.

• Things that people must have to live

• What people would like to have

• What people give up when they make a choice to have one want satisfied.

Which of the following is an example of opportunity cost?

• Choosing between new shoes and a new phone.

• Choosing a new phone over new shoes. The shoes are the opportunity cost.

• Choosing paying the bills over paying for groceries.

• Choosing paying the bills over paying for groceries. The groceries are the opportunity cost.

What is a natural resource?

• Materials and equipment used to produce goods and services.

• Resources that come from the earth.

• Human efforts needed to do something.

• knowledge, abilities, and experience of the people performing labor.

What is a capital resource?

• Materials and equipment used to produce goods and services.

• Resources that come from the earth.

• Human efforts needed to do something.

• knowledge, abilities, and experience of the people performing labor.

What is a human resource?

• Materials and equipment used to produce goods and services.

• Resources that come from the earth.

• Human efforts needed to do something.

• knowledge, abilities, and experience of the people performing labor.

What is human capital?

• Materials and equipment used to produce goods and services.

• Resources that come from the earth.

• Human efforts needed to do something.

• knowledge, abilities, and experience of the people performing labor.

What is an example of natural resources?

• A person standing in an assembly line working the machine.

• Machines used to make products

• Oil, Coal, Timber, Land

• Job training so people making products are experts.