Economics Basics
The study of how to satisfy unlimited and competing needs/wants with scarce resources
Economics
This is a useful, tangible item
Goods
Exists when there are not enough resources to satisfy human wants
People who decide how to combine resources to create new goods and services.
Entrepreneurs
The act of giving up one benefit in order to gain another great benefit.
Trade-off
Any human-made resource that is used to produce other goods and services.
Capital
Work that is performed for someone
Services
Give an example of something that is scarce
anything with not enough resources
Would you pick spending money on goods or services?
Goods: Make-up, clothes, cars, materials
Services: car repair, hair service, nail service.
"guns or butter" ?
to describe one of the common choices facing governments: the choice between spending money on military or domestic needs
Give an example of a need
anything that is necessary for survival
The effort people devote to tasks for which they are paid for.
Labor
If increasing physical capital increases productivity, why would a company not buy newer, faster computers for all its workers every year?
The company has limited resources and must make choices about how to use them.
Knowledge and skills a worker gains through education and experience.
Human Capital
Refers to the all natural resource used to produce goods and services.
Land
Give an example of a producer
anyone that makes goods or produces services
Difference between scarcity and shortage?
SCARCITY: basic principle of economics explaining that people must make choices because there are not enough goods and services produced to meet all their wants.
SHORTAGE: short or long-term lack of particular good or service.
When do we do RISE awards? (aka KUDOS)
Once of Month
Human-made objects used to create other goods and services.
Physical Capital
consumer
What are the three factors of production?
Land
Labor
Capital
Item we would like to have, but not necessary for survival
wants
What are the 3 economic questions that scarcity leads to?
What will be produced?
How will it be produced?
Why is it being produced?
Are all resources scarce?
YES, all goods and services are scarce because the resources used to produce them as scarce.
Who is a person who makes goods or produces services?
Producer