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econ ch.1
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difference between scarcity and economics
economics=study of needs and wants
scarcity=depends on if its necessary for survival
difference scarcity and shortage
scarcity=when a limited amount of goods is reached
shortage=when consumers want more than what is being produced
first task facing enteurprenership
to assemble resources to make goods and services
describe four factors of production
land=natural resources
labor=effort people devote
capitol=human made resources
two types pf capital?
physical, human
what are physical capital benifits
physical= human made objects used to create other goods and services
what are human capital benifits
human= the knowledge and skills a worker gains through education and experience
why are all goods and services scarce
reources used to produce them are scarce
how do you make a trade off
involves losing one quality or aspect of something in return for gaining another quality or aspect
difference between a trade off and oppurtunity cost
trade off= what you sacraficed
oppurtunity cost= what you couldve done with what was given up
thinking at the margin
when you decide how much more or less to do
ex. thinking at margin
solving math equation, going to school
production possibilities curve
graph to show alternative ways to use an economys productive resources
production possibilities show?
the production numbers of the company pending on sales and effieciency
what does efficiency and underulization mean?
effieciency= using resources so well in which maximizes output
underulization= the use of fewer resources than the economy is capable of using
how does growth effect production possibilities
growth will increase production and make the curve wider pending on how much growth
how does technology or education increase production possibilities
it increases efficiency for each good therfore making the company more productive and efficient
Author
Kenny121694
ID
192860
Card Set
econ ch.1
Description
econ ch.1
Updated
2013-01-15T02:02:11Z
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