ECONOMICS Chapter 1, Section 1- What is economics?

I. What Is Economics? A. Definition-Economics is the study of how people and countries choose to use their scarce resources to satisfy their unlimited wants and needs.

I. What Is Economics? B. Micro-Economics- Is the study of how households, companies, and individual markets use their resources. C. Macro-Economics- Is the study of the economy as a whole. Ex. Unemployment, inflation

II. What Are Economists Concerned With? A. Who? 1. Consumers-Those who purchase goods and services to satisfy their wants and needs.

II. What Are Economists Concerned With? 2. Producers-Those who make the goods and services.

II. What Are Economists Concerned With? B. How? 1. Goods-An object that can be purchased.

II. What Are Economists Concerned With? 2. Services-Actions or activities that are provided for a fee.

III. Economic Resources A. Resource-Anything used to make or obtain a need or want. B. Factors of Production-Resources which are used to produce goods and services. 1. Natural 2. Human 3. Capital 4. Entrepreneurship

III. Economic Resources 1. Natural Resources-Goods provided by nature that can be used to produce goods and services. Ex. Oil, coal

III. Economic Resources 2. Human Resources-Effort that humans exert in providing goods and services. Ex. Typing, computer technician

III. Economic Resources 3. Capital Resources-Goods that have been manufactured and are used to produce other goods and the money to purchase them. Ex. Hammer, cash register

III. Economic Resources 4. Entrepreneurship-The risk one takes in starting a new business or introducing a new good or service to the market. Ex. Film producer, travel agent