SCARCITY
What economic problem exists because resources are limited but wants are unlimited?
Scarcity
What must people do because of scarcity?
Make choices
What are the four factors of production?
Land, labor, capital, entrepreneurship
Why does scarcity force people to make choices?
Resources are limited
What is the next best alternative given up when making a decision?
Opportunity cost
Which factor includes tools and machines?
Capital
What is an example of scarcity?
Limited clean drinking water
Why is opportunity cost not always money?
It can include time or enjoyment.
Which factor includes human effort?
Labor
How does scarcity affect individuals and governments?
It forces prioritizing and trade-offs
If you work instead of studying, what is the opportunity cost?
Lost study time or grades.
Which factor involves risk-taking?
Entrepreneurship
Why can scarcity never be eliminated?
Human wants are unlimited
Why do opportunity costs differ between people?
People value alternatives differently.
Why are factors of production essential?
They are used to produce goods and services.