Upload
ethan-cain
View
213
Download
0
Tags:
Embed Size (px)
Citation preview
“A Picture is Worth a Thousand Words”
Economics Poster Contest 2014-15
Sponsored by
Econ Illinois
UIC Center for Economic Education
Opportunity CostOpportunity Costs are what we
give up when a resource is used for one purpose rather
than another.
Example: If a baker uses a bag of flour to bake bread, she
cannot use the same bag of flour to bake cakes.
Productive ResourcesProduction of goods and services in any economic
system involves three types of resources:
◦Natural Resources◦Human Resources◦Capital Resources
ScarcityWorld resources are limited, so
we cannot produce or have everything we could possibly
want.
Thus, we must make choices about how best to use the limited resources we have.
SpecializationEfficiency is increased when individuals, firms, and nations
produce the goods and services at which they are
best.
Thus, leaving the production of other goods to others.