Basic Economic Concepts q Know 3 Economics Questions
Basic Economic Concepts q. Know 3 Economics Questions q. Know Factors of Production q. Know Basic Economic Vocabulary
3 Economic Questions What to Produce? How to Produce? Whom to Produce For?
Factors of Production Land (Any Natural Resource) Labor (Workers) Capital (Money, Machines, Tools) Entrepreneurship (Starter)
Economic Products Goods and services that are useful, scarce, and transferable Command a price because they are scarce
Services Worked performed by someone –Ex: Home repair, concerts, haircuts
Goods Consumer goods- Goods with final use by individuals Capital goods- Goods that are used to produce other goods
Value and Paradox of Value- Worth in dollars and cents Paradox of Value- Idea that necessary items may have very low value while unneeded items may have high value
Utility q. SATISFACTION
Wealth Accumulation of resources and things that are tangible in the economy
Economic Growth Occurs when nation’s total output increases over time
Division of Labor Divide labor so individual workers do fewer tasks then before Specialization- Workers begin to do tasks they do more efficiently
Scarcity Created from unlimited wants and needs and limited resources Basic and Biggest Economic Problem
DO YOU KNOW? 3 Economics Questions? ? ? 4 Factors of Production? ? ? Terms like: – Scarcity – Division of Labor – Economics Growth – Paradox of Value – Wealth
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