Economics Unit 1
Education, skill, experience, creativity, good health, moral character are examples of what factor of production?
Human Capital
skills a worker gains through experience and education to help in the creation of goods/services
Human capital -intangible qualities
The earth running out of crude oil is an example of what
Scarcity
limited amount of resources for unlimited amount of wants
Scarcity -resources can't be replaced once gone
Oftentimes a company will create a ___________ of a product to make it seem more valuable and rare
Shortage
If a man decides to bail on dinner with his wife to play video games what is the opportunity cost?
-Dinner -Good relationship with wife
What are the 5 factors of production?
-Labor -Land -Physical Capital -Human Capital -Entrepreneur
Elon Musk, Bill Gates, Oprah Winfrey are all examples of what factor of production?
Entrepreneur
people who take all the factors and put them together, shouldering the risk to create new goods/services?
Entrepreneurs
Hoe working at the Charmin factory making toilet paper and getting paid for his work is the ____________
Factor Market
household selling factor of production for money
Factor Market
A teacher teaching students, a barista making coffee at Starbucks, a scientist finding the COVID-19 vaccine are all examples of what factor of production?
Labor
any effort a person devotes to a task in which they are paid for
Labor -must be paid
Coffee beans that will be used to make coffee is what factor of production?
Land
any natural resource used in the making or being used in creating goods and services
Land
the loss potential gain from other alternatives when one alternative is chosen
Opportunity Cost
If a student spends 3 hours and $20 dollars at the movies the ______________ is the time spent studying and saving the money to spend on something else
Opportunity cost -what is given up when a decision is made -the thing you are giving up
A bulldozer and hammer are an example of what factor of production?
Physical Capital
human made resource/item that help in the making of goods and services
Physical Capital
Businesses sell goods and households buy
Product Market
Charmin producing toilet paper and selling it to the public is the ____________
Product Market
The first day PlayStation releases PlayStation 5 they run out, but they will eventually restock and anyone who wants to buy one will be able to
Shortage
demand of a product/service exceeds its supply temporarily
Shortage -temporary