Unit 1 Review Economics

there are not enough resources available to produce everything that individuals demand

• production

• choice

• scarcity

• land

Presents a problem in economics because decisions produce costs

• scarcity

• choice

• entrepreneurship

• capital

The question, How much to produce?, is influenced by

• census data

• profit projections

• consumer demand

• government quotes

The resources needed to produce goods and services

• capital

• factors of production

• scarcity

• choice

The factors of production include:

• labor, birth, pregnancy

• land, water, air, fire

• land, labor, entrepreneurship, capital

• entrepreneurship, capital, business, money

all natural resources used to produce goods and services, such as oil, water, coal, air, timber, animals, and minerals

• capital

• entrepreneurship

• land

• labor

Any human effort, physical or mental, that goes into producing goods and services, including marketing, distribution, and selling

• capital

• entrepreneurship

• land

• labor

tools, machinery, buildings used in the production of goods and services, sometimes called capital goods

• capital

• entrepreneurship

• land

• labor

individuals who combine the other factors of production to create businesses

• capital

• entrepreneurship

• land

• labor

economic model that shows various output combinations of two goods and demonstrates the concept of opportunity cost

• factors of production

• opportunity cost

• production possibility curve

• scarcity model