Factors of Production
raw materials like lithium, tungsten, gold, etc
land
Consumer spending is used to acquire these.
goods and services
all the choices you gave up on/ didn't choose
Trade-offs
The fundamental problem in economics.
scarcity
Work performed by someone for someone else
(Examples: legal advice, oil change, hair cut)
service
Factory workers and restaurant servers are examples.
labor
Where goods and services are traded/bought
The cost of the next best alternative (in other words, the cost of what you give up)
opportunity cost
fancy word for "stuff"
goods
Goods used to produce other goods and services
capital goods
Delivery trucks, bulldozers, and plastic, are examples.
capital
Where businesses purchase factors of production (aka: productive resources)
factor/resource market
getting detention after school (intervention) for being late to class is a form of....
incentive
This is one way that individuals deal with scarcity (think of the Survivor Island simulation), _____ your expertise/ what you have
trade
These are used to create goods.
capital goods
Bill Gates, Tim Cook, and Walt Disney are examples, considered as visionaries
entrepreneurship
Employers exchange these for productive resources/ you get these in return for your labor
income/ wages/ salary
When you weigh the pros and cons before making a choice.
cost benefit analysis
Scarcity makes ndividuals to do this.
make choices to allocate resources
the usefulness of a good or service
utility
startup company founders are examplees
entrepreneurship
Public services
(ex: schools, fire departments, police)
are provided by this player in the circular flow diagram.
government
The opportunity cost of hanging out with friends for two days instead of earning $50/day by working.
$100
This is why scarcity exists and is a problem.
we have unlimited wants and needs but limited resources
Competition and profit drive decisions in this economic system.
capitalism