| What is Economics? | The social science concerned with how individuals, institutions, and and society make optimal choices with limited resources (scarcity |
| What is the economizing problem? | society's wants are unlimited, while resources are limited (scarce) |
| scarcity definition | limited resources. restricts options, and demands choices |
| What is Opportunity Cost? | As production of a good increases, the cost of producing that unit rises. |
| ceteris paribus meaning | the assumption that all other factors in a scenario stay the same. (equal) |
| Resource Categories | 1. Land - natural resources . 2 Labor - worker related activities Ex. teachers, clerk, employee . 3. Capital - (NOT MONEY) ex. factory, storage, transportation, and distribution facilities . also tools and machinery 4. Entrepreneurial Ability- Entrepreneurs who perform specific behaviors. business decision, risk ect. |
| What is a production possibilities curve? | a curve that displays the different combinations of goods and services that society can produce in a fully employed economy. assuming theres a fixed availability of resources, and fixed technology. |
