1. Basic Economic Concepts
Know 3 Economics Questions
Know Factors of Production
Know Basic Economic Vocabulary

2. 3 Economic Questions What to Produce? How to Produce?
Whom to Produce For?

3. Factors of Production Land (Any Natural Resource) Labor (Workers)
Capital (Money, Machines, Tools)
Entrepreneurship (Starter)

4. Economic Products
Goods and services that are useful, scarce, and transferable
Command a price because they are scarce

5. Services Worked performed by someone
Ex: Home repair, concerts, haircuts

6. Goods Consumer goods- Goods with final use by individuals
Capital goods- Goods that are used to produce other goods

7. Value and Paradox of Value
Value- Worth in dollars and cents
Paradox of Value- Idea that necessary items may have very low value while unneeded items may have high value

8. Utility
SATISFACTION

9. Wealth
Accumulation of resources and things that are tangible in the economy

10. Economic Growth
Occurs when nation’s total output increases over time

11. Division of Labor
Divide labor so individual workers do fewer tasks then before
Specialization- Workers begin to do tasks they do more efficiently

12. Scarcity Created from unlimited wants and needs and limited resources
Basic and Biggest Economic Problem

13. DO YOU KNOW? 3 Economics Questions??? 4 Factors of Production???
Terms like:
Scarcity
Division of Labor
Economics Growth
Paradox of Value
Wealth