Lesson 1: Scarcity

Question 1

Need and Wants

Answer 1

Need - something that enables us to sustain ourselves
Wants - something that we desire, but isn’t necessary for survival
- Unlimited

Question 2

Goods and Services

Answer 2

Goods - items that are provided and produced
Services - activities/actions individuals or groups often make to make our lives easier
- Limited resources

Question 3

Scarcity

Answer 3

Limited amount of goods/services that are available to meet unlimited wants

Question 4

3 factors of production

Answer 4

Land - natural resources to make good/service (any materials found in nature)
Labor - required effort from the people to tasks which they’re paid
Capital - human-made resources to make good/service

Question 5

2 Types of Capital

Answer 5

Physical Capital - human-made objects used to create other goods and services
Human Capital - knowledge/skills a worker gains through education or experience

Question 6

shortage

Answer 6

high demand of more goods/services than producers are willing to make available at a particular price

Question 7

economics

Answer 7

study of how people seek to satisfy their needs/wants by making choices

Question 8

Benefits of Capital

Answer 8

• Extra time, more knowledge, more productivity