ch 1, sec 1 scarcity
DESCRIPTION
Scarcity and the Factors of ProductionTRANSCRIPT
Scarcity and Scarcity and the Factors of Productionthe Factors of Production
Chapter 1, Section 1
Needs vs. WantsNeeds vs. Wants
Need – Something that is necessary for survival.
Want – An item that we desire but that is not essential to survival.
NeedsNeedsFood
Shelter
Clothing
Education
ScarcityScarcity
Scarcity – Always exists. There’s never enough time, money, resources, etc.
Shortage – Temporary. Natural disasters, long term drop in resources, etc.
Economics – study of how people seek to satisfy their needs and wants by making choices.
Factors of ProductionFactors of Production
Factors of Production – resources used to make goods and services
1.Land - Natural Resources2.Labor - Effort devoted to a task3.Capital - Physical (buildings & tools) Human (knowledge)
LandLand
LaborLabor
CapitalCapital
CapitalCapital
LandLand