Unit One Lesson Two Economics

a physical article that has been produced for sale or use

• Services

• Goods

• Productivity

• Capital

Work done by someone else for which a consumer, business is willing to pay

• Production

• Human capital

• Services

• Goods

the resources used to produce goods and services. Economists define these resources as land, labor, and capital

• Factors of Production

• Opportunity costs

• Scarcity

• Goods

a person who assembles and organizes the resources necessary to produce goods and services

• Production

• Shortages

• Goods

• Entrepreneurship

the tools, machines, and buildings used to produce goods and services

• Scarcity

• Capital

• Goods

• Services

a measure of the efficiency with which goods and services are produced, stated as a ratio of output per unit of input

• Scarcity

• Services

• Productivity

• Goods

The next best alternative that is given up when making a choice a measure of what you must give up to get what you want

• Services

• Opportunity Cost

• Tradeoffs

• Goods

model shows all the combinations of two goods that can be produced with the resources and technology currently available

• Production Possibilities Frontier

• Opportunity costs

• Goods

• Capital Possibilities Frontier

Our wants are

• equal to our resources.

• Very limited

• Unlimited

• Abundant

What causes a shortage?

• No resources left to fill the demand

• No demand and a lot of supply

• a temporary increase in demand for a particular good or service

• Unlimited Resources filling the market