Ch1. What is Economics

something essential to survival

• Need

• Want

• Good

• Service

something that people desire but that is not necessary for survival

• Need

• Want

• Good

• Service

The physical object someone produces

• Need

• Want

• Good

• Service

the action or activities that one person performs for another

• Need

• Want

• Good

• Service

The principle that limited amounts of goods and services are available to meet unlimited wants

• Scarcity

• Economics

• Shortage

• Entrepreneur

The study of how people seek to satisfy their wants and needs by making choices.

• Scarcity

• Economics

• Shortage

• Entrepreneur

A person who decides how to combine resources to create goods and services

• Entrepreneur

• Factors of Production

• Land

• Labor

• Capital

The resources that are used to make goods and services

• Entrepreneur

• Factors of Production

• Land

• Labor

• Capital

All natural resources used to produce goods and services

• Entrepreneur

• Factors of Production

• Land

• Labor

• Capital

Effort people devote to tasks for which they are paid

• Entrepreneur

• Factors of Production

• Land

• Labor

• Capital