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Published byKathleen Rice Modified over 9 years ago
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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
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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
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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.
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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
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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.
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