Unit 1 - Basics of Economics - K

What is economics?

• The study of how people seek to satisfy their needs and wants by making choices.

• The study of how people spend their money.

• The study of how businesses grow.

• The study of how civilization has developed.

What is the basic economic problem?

• Scarcity

• Poverty

• Equity

• Opportunity Cost

3. Scarcity or Shortage

• Scarcity

• Shortage

4. Scarcity or Shortage

• Scarcity

• Shortage

Land is...

• material found in nature.

• effort a person devotes to a task and is paid

• the people who take the risk to combine FOP to create goods and services.

• a man made good that helps you to produce other goods and services.

What is labor?

• effort a person devotes to a task and is paid

• the people who take the risk to combine FOP to create goods and services.

• a man made good that helps you to produce other goods and services.

• material found in nature.

Entrepreneur is...

• the people who take the risk to combine FOP to create goods and services.

• a man made good that helps you to produce other goods and services.

• material found in nature.

• effort a person devotes to a task and is paid

What is a sewing machine classified as?

• Capital

• Land

• Labor

• Entrepreneur

What is Bill Gates classified as?

• Entrepreneur

• Capital

• Land

• Labor

10. Auto Mechanic

• Labor

• Entrepreneur

• Capital

• Land