1. Chapter 1

2. Learning Objective I can define economics and understand what causes the study of economics to exist

3. The Basic Problem in Economics Define – Economics Microeconomics Macroeconomics. Scarcity – 2 major scarce items Difference between Scarcity and Shortages

4. Learning Objective I know and can describe each of the Factors of Production

5. The Factors of Production Land – “Gifts of Nature” Labor – Goods? Services? Capital – machines, buildings, tools used to make goods. Increases Productivity – money counter Entrepreneurship – individuals start new businesses, intro new products and processes, and improve management techniques. Technology – use of land, labor, and capital that produces goods and services more efficiently. Assembly Line

6. Learning Objective I understand the importance of trade-offs and can identify opportunity cost in a decision I can interpret a production possibilities curve

7. Trade-Offs Define Trade-Offs Sacrificing one good or service to purchase or produce another Opportunity Cost Value of the next best alternative that was given up in the decision

8. Production Possibilities Curve