economic resources or factors of production Flashcards
factors of production
land
capital
labor
entrepreneurship
soil and natural resources that can be found in nature and are not manmade
land
man made resources used in the production f goods and services
capital
physical and human effort exerted in production
labor
develops an idea into a business
entrepreneurship
a condition where there are insufficient resources to satisfy the needs and wants of a population
scarcity
scarcity can be classified as:
relative
absolute
when the goods are scarce compared to its demand
relative scarcity
when the supply is limited
absolute scarcity
deciding between two or more possible alternative objects or actions
choice
refers to the value of foregone alternative
opportunity cost
characteristics of resources:
scarcity
multiple use
partially replaceable
insufficient resources to supply all the desires and needs of individuals
scarcity
resources can have more than one possible use
multiple use
one resource can replace another in the production of a good or service
partially replaceable
studying the life of man and how he is living with other
people
economic as social science
study of how theories work in practice
applied economics
composed of principles and concepts in economics
economic theory
represents the economic theories through tables, graphs, mathematical equations, and diagrams to better understand the economic events
economic model
a science of making choices
economics
deals with the allocation of scarce resources to meet the unlimited human wants
economics as social science
applies economics theory and econometrics in specific setting with the goal of analyzing potential outcomes
economics as applied science
