Scarcity and Shortages
Factors of production
Factors of production
This is the fundamental problem of economics—limited resources and unlimited wants
What is scarcity?
This term describes the value of the next best alternative you give up when making a choice
What is opportunity cost
Tools, machines, and buildings are examples of this type of capita
What is physical capital
This type of economy relies on habit, custom, or ritual.
What is a traditional economy?
The chance to make money encourages entrepreneurs to start businesses and take risks.
What is the profit motive?
This happens when a product is unavailable, often because demand is greater than suppl
What is a shortage?
The three basic economic questions are: What to produce? How to produce? and ________?
For whom to produce?)
Skills, training, and education people gain to make themselves more productive are called this.
What is human capital?
The United States is considered to have this type of economy (with some government regulation).
What is a market economy?
These types of goods are provided by the government because they are difficult to exclude people from using and one person’s use doesn’t reduce another’s.
What are public goods?
Scarcity always exists because resources are limited, but this can be temporar
What is a shortage
Deciding whether to use more workers or more machines answers which of the three basic questions?
How to produce?”
The right to own and control possessions and use them as you wish is known as this characteristic of free enterprise.
What are private property rights?
In this economy, the government makes most of the economic decisions.
What is a command economy?
Choosing between buying new shoes or saving money for a trip is an example of making this kind of decision.
What is an economic choice?
land, labor, capital, are what
Factors of production
If you spend $10 on a movie instead of saving it, the enjoyment of the movie is your benefit, but the money you could have saved is this.
What is the opportunity cost
The struggle among sellers to attract customers, which helps keep prices low and quality high, is called this.
What is competition?
In this economy, jobs and roles are often passed down through generations.
What is a traditional economy?
This characteristic of free enterprise allows people to choose their jobs, employers, and how they spend their money.
What is economic freedom?
Natural resources like water, soil, and minerals fall under this factor of production
What is Land
What are the 3 basic Economic questions?
This type of capital is something you can touch, while the other is the knowledge or ability workers have.
What is physical capital and human capital
Prices in this type of economy are set by buyers and sellers interacting in markets.
What is a market economy?
This is the study of how people use limited resources to satisfy unlimited wants and needs.
What is economics?)