Resources
are factors of production that are used in the production of goods and services. Types of resources are natural, human, capital, and entrepreneurship.
There are ______ factors of production
4
The 4 factors of production are?
Natural Resources, Human Resources, Capital Resources, and Entrepreneurs
Natural Resources
Are "gifts of nature" and exist without human intervention.
human resources
refer to the effort of people which is applied to the production of goods and services
There are ______ types of capital resources
2
What are the 2 types of capital resources?
Physical Capital and Human Capital
Physical Capital
Refers to manmade goods, such as tools, which are used o produce other goods.
Human Capital
Refers to the skills and knowledge a person has acquired through experience and/or education.
Entrepreneurs
Are individuals who are willing to take risks, to bring the other resources together and develop new product, and new businesses. Entrepreneurs exist to earn a profit.
Profit
Is the amount of money left after all expenses have been paid.
Production
is the combining of human, natural, capital, and entrepreneurship resources to make goods or provide services. Resources available and consumer preferences determine what is produced.
Consumer Preferences
The subjective (individual) tastes. Note that preferences are independent of income and prices.
Consumption
is the using of goods and services. Consumer preferences and price determine what is purchased and consumed.
Scarcity
Is the condition of not being able to have all the goods and service one wants. (Limited resources)
Choice
is selection of an item or action from a set of possible alternatives. Individuals must choose or make decisions about desired goods and services because these goods and services are limited.
Making a choice is
2 choices
All choices have
opportunity costs
Opportunity Cost
Is the value of the best alternative given up.