1. 1.1 The Economic Problem

2. Wants and Needs

3. Economic Choices Economics is about making ______________. ____________________ is the condition facing all societies because there are not enough productive resources to satisfy people’s unlimited wants. ___________________ __________________, or factors of production, are the inputs used to produce the goods and services people want. Because productive resources are scarce, ____________ and ______________ are scarce too. Making choices means you must pass up some ______________________________. ________________________ examines how people use their scarce resources to satisfy unlimited wants.

4. “Although your wants and desires are virtually unlimited, the productive resources available to satisfy these wants are scarce.” ______________________________ is the study of how people use their scarce resources to satisfy their unlimited wants

5. Productive Resources Are also called _________________ of production, inputs or resources. They are broken down into 3 categories: ___________ _______________ is the broad category of human effort, both physical and mental, used to produce goods and services. – __________ is the most important human resource – An __________________ tries to earn a profit by developing a new product or finding a better way to produce and existing one.

6. Productive Resources (continued) ___________ __________ are also called “gifts of nature,” including land, forests, minerals, oil reserves, bodies of water and even animals. – _______________________ resources can be drawn on indefinitely – ______________________ resources do not renew themselves, so they are available in limited amounts. _____________ ____________________ are also called capital goods. They are creations used to produce goods and services.

7. Goods and Services A ___________________ is tangible – something you can see, feel or touch. A ______________________ is intangible, or not physical.