Economics  Science of Choice-  People make choices/decisions daily NEEDS/WANTS are unlimited  Resources/goods/services/time = limited  Goods- physical items- shoes, shirt, CD  Service-actions or activities performed for others: haircut, tutoring dentistry

Scarcity  Scarcity always exists  Scarcity- limited amount of resources  Shortage- short term lack of goods/services  All resources are considered scarce or limited.  Oil, water, anything!  No such thing as limitless supply

Resources  Factors of production- resources used to make all goods and services. Land- natural resources used to make goods Labor-work or effort by people in production Capital-human made resources in production Physical capital-buildings, tools, or “ physical ” items used to make goods and service easier.

Resources  Human capital- Knowledge and skills attained and applied by workers.  Better knowledge and skill=better service or good.  Assembly line worker- both?  Doctor- both?  Human and physical capital both important

Entrepreneurs  Ambitious leaders willing to combine land, labor, capital resources to create goods and services.  Name some.  Bill Gates, Henry Ford, Ted Turner,  Economists- all goods and services scarce because land, labor, and capital scarce.