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?
