econ ch.1

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