INTRO. TO ECONOMICS

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INTRO. TO ECONOMICS

• NOTES

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Key Terms

• 1. Economics study of how countries (people)
  use their resources to fulfill their needs and
  wants.
• 2. Resources anything used to obtain needs or
  wants.
• 3. Scarcity the lack of a resource having
  little or not enough.
• 4. need something for physical survival (food,
  clothing, and shelter)
• 5. want anything that is not a need these are
  luxury items
• 6. goods any product that you buy.
• 7. service an activity performed for a fee
• 8. factors of production 4 categories of
  resources needed to provide goods and services

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I. Factors of Production

• A. LAND
• 1. any natural resource
• 2. property
• B. LABOR
• 1. human resource / human capital
• C. CAPITAL
• 1. money (family, friends, and savings)
• 2. machinery, equipment, inventory
• D. ENTREPRENEUR
• 1. person who starts business (risk taker)
• 2. he/she decides how to best use the other 3
  factors of production successfully

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II. Technology

• A. use of science to make products faster,
  better, and cheaper
• B. division of labor/specialization dividing
  tasks of a job to make a product faster (mass
  production)