econ ch.1

• economics=study of needs and wants
• scarcity=depends on if its necessary for survival

• scarcity=when a limited amount of goods is reached
• shortage=when consumers want more than what is being produced

to assemble resources to make goods and services

• land=natural resources
• labor=effort people devote
• capitol=human made resources

physical, human

physical= human made objects used to create other goods and services

human= the knowledge and skills a worker gains through education and experience

reources used to produce them are scarce

involves losing one quality or aspect of something in return for gaining another quality or aspect

• trade off= what you sacraficed
• oppurtunity cost= what you couldve done with what was given up

when you decide how much more or less to do

solving math equation, going to school

graph to show alternative ways to use an economys productive resources

the production numbers of the company pending on sales and effieciency

• effieciency= using resources so well in which maximizes output
• underulization= the use of fewer resources than the economy is capable of using

growth will increase production and make the curve wider pending on how much growth

it increases efficiency for each good therfore making the company more productive and efficient