Chapter 2 - Scarcity Flashcards
scarcity is not the same as blank and is not a blank
poverty, shortage
most basic concept of economics and occurs when the ingredients for producing things that people desire are insufficient to satisfy all wants
scarcity
any activity that results in the conversion of resources into products that can be used in consumption
production
inputs that are used to produce things that people want
resources/factors of production
natural resources or the gifts of nature and is a resource
land
resource that is the human resource
labor
all manufactured resources
ex) machines themselves
physical capital
accumulated training and education of workers resource
human capital
resource of the person who organizes, manages, and assembles the other resources and is the risk taker.The person in charge of the money.
entrepreneurship
all things from which individuals derive satisfaction or happiness
goods
scarce goods, for which the quantity demanded exceeds the quantity supplied at zero price
economic goods
tasks that are performed for someone else and can be referred to as intangible goods
services
to economists, this term is not definable
needs
goods and services on which we place a positive value
wants
people have blank wants
unlimited