Can We Have It All? Microeconomics Unit 1: Basic Economic Concepts

An Economic Way of Thinking Economics wouldn’t exist were it not for scarcity

We have wants unlimited

And live in a world with resources Limited

Scarcity is the condition in which our wants are greater than the resources available to satisfy those wants

How do we get the things we want? We produce it! Using the four factors of production

The Four Factors of Production: Land —all natural resources used to produce goods and services

Labor —the effort that a person devotes to a task for which that person is paid

Capital —any human-made resource that is used to produce other goods and services

Entrepreneur — ambitious leaders who decide how to combine land, labor and capital resources to create new goods and services

Sort the factors of production: Land Labor Capital Entrepreneur Break into groups of four and sort your photos into four piles

Wants are unlimited Resources are limited Therefore, People must make choices