Econ 1 - Scarcity

Why do all societies have to make decisions about how resources will be used?

• People are greedy

• There are not enough resources for those who want them

• Resources are too expensive for most people

• Because there is a huge gap between the rich and poor

What is the fundamental problem in Economics - it is what forces all of us into making choices?

• Too many resources for the demand

• Limited wants

• Unlimited resources

• Scarcity

The 3 Factors of Production (FOP) are

• labor, resources, and money

• land, labor, capital

• metal, wood, and water

• resources, people, and climate

Capital refers to...

• The "gifts of nature" or natural resources not created by human effort.

• people with all their efforts and abilities

• the tools, equipment, and factories used in production of goods and services

• individuals who start a new business or bring a product to market.

Land includes...

• The "gifts of nature" or natural resources not created by human effort.

• the tools, equipment, and factories used in production of goods and services

• people with all their efforts and abilities

• individuals who start a new business or bring a product to market.

Iron, minerals, coal and plants are examples of which productive resource?

• land
• labor
• entrepreneurship
• capital

Which factor of production would you consider a lawn mower?

• Land
• Labor
• Capital

True or False: All resources are scarce.

• True

• False

True or False: All goods and services are scarce.

• True

• False

Which of the following factors of production can be found in this image?

• labor

• land

• capital