Lesson 1: What is Economics?

Scarcity: not enough of something (ex: some people have scarcity of money for food)

• Yes

• No

• I do not know

Limited Resources: there are only certain amounts of resources (ex: clean water, oil)

• Yes

• No

• I do not know

Unlimited Wants: there is no end to the number of things people want and need.

• Yes

• No

• I do not know

Human Resources: workers and their skills (ex: truck drivers, doctors, teachers, nurses)

• Yes

• No

• I do not know

Capital Resources: things that are used to produce more goods and services (ex: factories or tools)

• Yes

• No

• I do not know

Natural resources:

Materials or substances such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain

• Yes

• No

• I do not know

Economic System: a system a society uses to answer the basic economic questions such as what to produce

• Yes

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Opportunity Cost: when you make a choice, your opportunity cost is the second thing you wanted most.

• Yes

• No

• I do not know

Economics: the study of how individuals and societies use their scarce resources to get goods and services.

• Yes

• No

• I do not know