Intro to Economics
What does Economics study?
the CHOICES made by producers and consumers
What are the 4 Factors of Production?
Capital, Entrepenuer, Land, Labor
What does "Guns or Butter" refer to?
Whether the government will spend money on military or the people (consumer goods).
What are the 2 groups needed in an economy?
Producers and Consumers
What stage of the Factors of Production do most products begin?
Land (resources, materials etc)
What is a term used to describe losing one benefit to gain another (spending more money on one thing, means we can't spend as much money on the other thing)?
Trade-off
What is the difference between a scarcity and a shortage AND give an example of each?
Scarcity = permanent limit-water,land,natural resources
Shortage = temporary limit-toilet paper, bread, bottled water
What kind of capital is when the company trains the employees?
Human Capital
How long does a good have to last in order to be considered a "durable good" AND give an example of one.
3 years; car, house, microwave, stove, fridge, tools
What is "the most valuable thing given up" when making a choice called?
Opportunity Cost
Give an example of physical capital.
Any tool, machinery etc used to make/produce an item.
What is an Entrepenuer?
Someone who comes up with, invents, or creates an idea or product.
What is the graph called that shows us the minimum and maximum output of 2 different products?
Production possibilities curve
What are the 3 questions asked when deciding on economic products?
What to make, how to make it, who to make it for.