Basic Economic Concepts

Which factor of production would you consider a lawn mower?

• Land

• Labor

• Capital

• Entrepreneur

Machinery

• Land

• Labor

• Physical capital

• Human capital

• Entrepreneurship

Entrepreneurs are...

• people with all their efforts and abilities

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

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

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

The study of how people try to satisfy what appears to be seemingly unlimited and competing wants through the careful use of relatively scarce resources

• Consumer Sovereignty

• Economics

• Opportunity Cost

• Competition

The condition that results from society not having enough resources to produce all the things people would like to have

• Scarcity

• Opportunity Cost

• Economics

• Private Property

A way of expressing a need -i.e, Need: Food; Want: Pizza

• Want

• Capital

• Entrepreneur

• Economics

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

• Capital

• Tools

• Durable Goods

• Consumer Goods

A risk-taker in search of profits who does something new with existing resources

• Scarcity

• Competition

• Profit Motive

• Entrepreneur

The cost of the next best alternative use of money, time, or resources when another choice is made rather than another

• Economics

• Scarcity

• Opportunity Cost

• Capital

Type of market economy in which the factors of production are privately owned.

• Capitalism

• Communism

• Socialism

• Mixed Economy