Economics Ch 1 Sec 1

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People must make choices to satisfy their needs and wants
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goods and services are limited or scarce
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all goods and services are scarce
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the land, labor, and capital needed to produce them are scarce, or limited
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physical capital is an important factor of production
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physical capital can save people time and money
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entrepreneurs are important to the production of goods and services
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entrepreneurs bring the factors of production together
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A video game is a _____ because it is not necessary for survival. When consumers want more of a good or service that producers are willing to provide at a particular price, a _____ occurs. Land, labor, and capital make up the _____. When people make resources for producing other goods and services, they are creating _____. The term _____ refers to water, forests, and all other natural resources used to produce goods and services. The two categories of capital are physical and _____. Factories, machinery, and pencils are all examples of _____ capital.
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want, scarcity, factors of production, capital, land, human, physical
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What is economics?
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the study of how to make money
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When does scarcity occur?
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when there are limited quantities of resources to meet unlimited needs or desires (everything is scarce)
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when do shortages occur?
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when producers will or cannot offer goods or services at current prices (man made)
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How do the factors of production work?
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you go after labor, labor will give you capital, and capital will give you land
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land
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all natural resources that are used to produce goods and services
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labor
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any effort a person devotes to a task for which that person is paid
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capital
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any human-made resource that is used to create other goods and services

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