Guided Reading Activity 1-1 "The basic problem in economics"

Individuals who take the initiative to start a new business or introduce a new product are demonstrating _14_.

Entrepreneurship

This leads to the basic problem of economics, which is _7_ this means that people do not have enough income, time, and other resources to satisfy their every want.

Scarcity

The third factors of production is _13_, or manufactured goods used to produce goods and services.

Capital

People need to make economic _6_ Because everything exists in limited amounts. At any given time, there is only a fixed amount of resources available and people compete to use those resources.

Choices

_1_is the study of how individuals, families, businesses, and societies use limited _2_

Economics, Resources

People work to produce _11_ which are tangible items, and _12_, which are activities done for a fee.

Goods, Services

The work people do is _10_, often referred to as a human recourse.

Labor

While _4_ deals with the economy as a whole and decision making by large units such as governments.

macroeconomics

_3_ Deals with behavior and decision making by small units such as individuals and firms,

microeconomics

Economists consider everything other than basic survival needs to be a _5_. this includes TVs, DVDs, computers, and automobiles.

want

When economics refer to scarce resources, they are referring to the _8_, which are the resources necessary for the production of goods and services.

Factors of production

Today, some economists consider _15_, or the use of science to produce goods and services, an additional factor of production.

Technology

There are four factors of production. _9_ is a natural resource present without human intervention.

Land