1. Scarcity and the factors of production Michael Gobril 5 th period

2. Information  economics is focused around the fact that we cannot have everything we need or want therefore we must make choices  Economics- the study of how people seek to satisfy their needs & wants by making choices  A lot of the time we fail to understand the concept of scarcity, but the fact is that everything on this planet is scarce since everything is of limited quantity  Both goods and services are limited since you can only have so much

3. Notes  we need people to devote time to research and development in order to continue increasing our efficiency & productive capabilities  everything, including the factors of production, is scarce, so everything is of limited quantities  we will never be able to produce enough to satisfy all of our wants & needs

4. vocab  SCARCITY—limited quantities of resources to meet unlimited wants  different from a shortage in that shortage can be temporary, while everything will always be scarce  FACTORS OF PRODUCTION—land, labor, & capital; the 3 groups of resources that are used to make all goods & services  HUMAN capital—knowledge & skills gained through education & experience  ENTREPRENEURS—ambitious leader who combines land, labor, & capital to create & market new goods & services

5. FACTORS OF PRODUCTION  Land—all natural resources, including fertile land for farming, coal, water, etc.  Labor—physical effort by a person, for which person is paid (includes dentist & construction worker)  Capital—any human-made resource used to produce other goods & services

7. Were gonna watch this video now..  http://www.youtube.com/watch?v=Y HZGOuopkjU