Introduction to Scarcity and Factors of Production

These flashcards cover key concepts related to scarcity and factors of production in economics.

Scarcity

The fundamental economic problem that resources are limited while wants and needs are unlimited.

Factors of production

The resources used to produce goods and services, including land, labor, capital, and entrepreneurship.

Capital

A factor of production consisting of tools, equipment, and infrastructure used to produce goods and services.

Labor

A factor of production consisting of human effort and skills used to produce goods and services.

Land

A factor of production that includes natural resources and physical space used in production.

Trade-offs

The choices made when selecting one option over another due to limited resources and competing wants.

Non-rival

A characteristic of a good or resource where one person's use does not prevent another person from using it simultaneously.

Resources

Inputs or materials used to produce goods and services, including factors of production such as land, labor, and capital.