Decision Making and Resources

Production and Resources Economics is the study of how a society produces and distributes goods and services. –Goods-Items that are bought and sold. You can touch them. –Services-Activities that people need and usually pay for. –Examples –Production- process of making goods or delivering services.

Factors of Production Land-Resources found in nature, such as soil, minerals, trees, and water. Labor- Skills and time contributed by people to the production of goods and services. Capital-Resources made by people, such as buildings, tools, and machinery. Entrepreneurship-Activities of people who decide what kind of economic activities to pursue.

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