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