econ

Economic Resources

farms, roads, buildings etc., water, sunlight, wind, oil, forests, and minerals

• Natural Resources

• Capital Resources

• Human Resources

Economic Resources

Processed materials, equipment & buildings used in production

• Natural Resources

• Human Resources

• Capital Resources

Economic Resources

All the human effort that is used directly in production

Entrepreneurship: Creativity, innovation and initiative

• Human Resources

• Capital Resources

• Natural Resources

Economic System

Economic decisions depend upon social customs

Rarely changes from generation to generation

• Traditional Economy

• Market Economy

• Command Economy

• Mixed Economy

Economic System

Economic decisions are based on private ownership

Individuals are free to pursue their own self-interests

• Market Economy

• Traditional Economy

• Command Economy

• Mixed Economy

Types of Economies:

controls all elements of the economy and establishes how income is distributed

• Command Economy

• Market Economy

• Mixed Economy

• Traditional Economy

Types of Economies:

Characteristics of market and centrally planned economic systems

• Command Economy

• Market Economy

• Mixed Economy

• Traditional Economy

what is Scarcity

• resources requires a choice between wants

• focuses on describing and explaining economic phenomena, whereas 

• focuses on what is a fair or desirable economic system.

Opportunity cost

•  refers to the alternative that is sacrificed when a choice is made

• focuses on describing and explaining economic phenomena, whereas 

• focuses on what is a fair or desirable economic system.

Positive economics

• focuses on describing and explaining economic phenomena, whereas 

• change in one variable directly causes a change in another variable.

•  change in one variable causes a change in another variable through a third variable.