Economics SSEF1

How resources (goods and services) are distributed.

Resource Allocation

Basic condition that exists when unlimited wants exceed limited productive resources.

Scarcity

Things used to make or provide goods and services.

Factors of Production (Productive Resources)

The next best alternative given up when individuals, businesses, and governments confront scarcity by making choices.

Opportunity Cost

Human-made tools used to produce goods and services (hammer, factory, machinery, trucks)

What are examples of Capital Goods?

Workers and the work they do

What are examples of Labor?

God-made things (trees, minerals, water, etc)

What are examples of Land?

Individuals: Car instead of vacation Businesses: new employee instead of new computers Governments: paved roads instead of new school

What are examples of Opportunity Costs?

• Lottery • Age • People with the most money

What are strategies for allocating scarce resources?

Land Labor Capital Goods Entrepreneurship

What are the 4 types of factors of production?

Business owner takes a risk by combining other FOP in a new way to make profits

What is Entrepreneurship?

Productive Resources

What is another term for Factors of Production?