Upload
tracy-bates
View
216
Download
0
Embed Size (px)
Citation preview
1.1
The Economic Problem
Wants and Needs
Economic Choices• Economics is about making ______________.• ____________________ is the condition facing all
societies because there are not enough productive resources to satisfy people’s unlimited wants .
• ___________________ __________________, or factors of production, are the inputs used to produce the goods and services people want.
• Because productive resources are scarce, ____________ and ______________ are scarce too.
• Making choices means you must pass up some ______________________________.
• ________________________ examines how people use their scarce resources to satisfy unlimited wants.
“Although your wants and desires are virtually unlimited, the productive resources available to
satisfy these wants are scarce.”
• ______________________________ is the study of how people use their scarce resources to satisfy their unlimited wants
Productive Resources• Are also called _________________ of
production, inputs or resources. They are broken down into 3 categories:
• ___________ _______________ is the broad category of human effort, both physical and mental, used to produce goods and services. – __________ is the most important human resource– An __________________ tries to earn a profit by
developing a new product or finding a better way to produce and existing one.
Productive Resources (continued)• ___________ __________ are also called “gifts
of nature,” including land, forests, minerals, oil reserves, bodies of water and even animals.–_______________________ resources can be
drawn on indefinitely –______________________ resources do not
renew themselves, so they are available in limited amounts.
• _____________ ____________________ are also called capital goods. They are creations used to produce goods and services.
Goods and Services• A ___________________ is tangible –
something you can see, feel or touch.• A ______________________ is intangible,
or not physical.