AAD Economics

Unlimited wants with limited resources available.

• tradeoff

• scarcity

• opportunity cost

The next best option you give up when you make a decision.

• tradeoff

• scarcity

• opportunity cost

Giving up one thing for another

• tradeoff

• scarcity

• opportunity cost

all resources, such as mined minerals, native plants, and animals; natural resources

• labor

• capital

• land

all human endeavors such as mental abilities

• labor

• capital

• land

all human creations that help produce wealth, such as a car used as a taxi

• labor

• capital

• land

A person who puts together the factors of production and takes on risk

• entrepreneur

• production

• business plan

the process and everything involved in making something

• entrepreneur

• production

• business plan

A plan for how a business will operate and generate a profit (make money)

• entrepreneur

• production

• business plan

What are the 3 factors of production?

• land

• labor

• capital

• supply

• demand