Chapter 1

Learning Objective I can define economics and understand what causes the study of economics to exist

The Basic Problem in Economics Define – Economics Microeconomics Macroeconomics. Scarcity – 2 major scarce items Difference between Scarcity and Shortages

Learning Objective I know and can describe each of the Factors of Production

The Factors of Production Land – Labor – Capital – Entrepreneurship – Technology –

Learning Objective I understand the importance of trade-offs and can identify opportunity cost in a decision I can interpret a production possibilities curve

Trade-Offs Define Trade-Offs Opportunity Cost

Production Possibilities Curve