Do Now Pick your own seats! ~Choose wisely~ Grab your folder. Fill out your budget. List 5 things you need List 5 things you want How are the two lists different? Which ones can you live without?

Chapter 1 What is Economics? Section 1 Scarcity and the Factors of Production

Scarcity and Choice cannot need want satisfy choices economics The study of __________ begins with the idea that people _________have everything they need and want. A ______is something like air, food, or shelter that is necessary for survival. A _______is an item that we desire but that is not essential to survival. Economics is the study of how people seek to ________ their needs and wants by making____________. cannot need want satisfy choices

Scarcity ________are physical objects such as shoes and shirts. Services are ______or _______that one person performs for another. Scarcity implies ________ quantities of resources to meet ________wants. No one can have an _________ supply of everything. Scarcity is not the same as a__________. A shortage occurs when producers _________ or _________ offer goods or services at the current prices. They can be temporary or____________. Goods actions activities limited unlimited endless shortage will not cannot long-term

Factors of Production: Land, Labor and Capital Economists call the resources that are used to make all goods and services the ____________________. These include land, labor and capital. factors of production

Land, Labor, Capital Land refers to all ________ resources used to produce goods and services. Labor is the effort that a person devotes to a task for which that person is paid. Capital is any human-made resource that is used to produce other goods and services. natural

Physical and Human Capital Human-made objects used to _________ other goods and services are called _________ capital. This saves companies a great deal of time and money. Human capital is the ___________ and skills a worker gains through education and experience. create physical knowledge

Entrepreneurs Entrepreneurs are ambitious leaders who decide how to ________ land, labor, and capital resources to create _____ goods and services. combine new

Fill out the following… Which factors of production is represented: An office building ___________________ And assembly line worker ____________ A tree used to make paper ____________ Unused soil ________________________ An artist ___________________________ A student __________________________ Name 3 Entrepreneurs 1. _______________ 2. ______________ 3. _______________