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scarcity - The condition that constantly exists as a result of society not having enough resources to produce what everyone needs or wants, economics - Study of how people try to satisfy seemingly unlimited and competing wants through the careful use of relatively scare resources., need - Basic requirements to survive, want - Something desired but NOT necessary. EX: extra 💰, new clothes, or a new 🚗., factors of production - Resources required to produce the things we would like to have, the are: land, capital, labor and entrepreneurs., land - One of the factors of production. Known as the "gifts of nature" like fields and forests. Land is in fixed or limited supply., capital - One of the factors of production. Also known as capital goods includes the tools, equipment, machinery and factories used in the production of goods., labor - All people, except entrepreneurs, with their efforts abilities and skills., entrepreneur - Risk taker in search of profits who does something new with existing resources., gross domestic product (GDP) - The dollar value of final goods, service, and structures produced within a country's borders in a 12 month period., Trade Off - Each of the alternative options given up when making a decision, Opportunity Cost - The most desired trade-off of a decision, Microeconomics - Study of individuals, firms, and government behavior, at a specific level, within markets, Macroeconomics - Study of the aggregate economy as a larger whole, and its interactions with other economie, The three essential questions consumers, firms, and governments together answer… - what to produce? how to produce? for whom to produce?,
14%
1.1 Scarcity & Opportunity Cost
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