9 Economic Concepts
Economics - answersThe study of how scarce resources are allocated to attain wants.
Scarcity - answersProblem all economies face. Limited resources, but unlimited wants.
Three Basic Questions All Economies Must Answer - answersWhat, How, for Whom to
produce?
Factors of Production/Resources - answersThe resources (inputs) used to make any
good or service, which are land, labor, capital, and entrepreneurship.
Entrepreneurship - answersWilling to take the risk to develop a new idea or business,
with the goal being to make a profit.
Land - answersNatural resources. Examples- Copper, Oil, Coal.
Labor - answersPeople working for a wage. Examples- Lawyer, Teacher, Construction
worker
Capital - answersAny thing used to make something else. A tool.
Opportunity Cost - answersThe value of the next best alternative given up. It's the thing
you did not choose but was 2nd best.
Marginal Cost - answersThe cost of getting or making one more item.
Economics - answersThe study of how scarce resources are allocated to attain wants.
Scarcity - answersProblem all economies face. Limited resources, but unlimited wants.
Three Basic Questions All Economies Must Answer - answersWhat, How, for Whom to
produce?
Factors of Production/Resources - answersThe resources (inputs) used to make any
good or service, which are land, labor, capital, and entrepreneurship.
Entrepreneurship - answersWilling to take the risk to develop a new idea or business,
with the goal being to make a profit.
Land - answersNatural resources. Examples- Copper, Oil, Coal.
Labor - answersPeople working for a wage. Examples- Lawyer, Teacher, Construction
worker
Capital - answersAny thing used to make something else. A tool.
Opportunity Cost - answersThe value of the next best alternative given up. It's the thing
you did not choose but was 2nd best.
Marginal Cost - answersThe cost of getting or making one more item.
