what is economics?

what is an entrepreneur

identity problems, create new ideas, aren’t afraid to take risks, new ways of doing things, and organize factors of production

explain BENEFITS the Henry Ford quote

he had: loyal costumer, happy employees, satisfied costumers, positive brand identity, created mass market

explain the TRADE-OFFS Henry Ford made

revenue, profit, suppliers and, costumers

what is economics?

flow of goods and services, choices/trade-offs, study of how people choose with goods and services with scarse resources

examples of land

oil, iron, water, farms

examples of labor

farmers, waitresses, cashiers

examples of physical capital

cash, tools, equipment, buildings

examples of human capitals

education, training, skills, job experience

opportunity cost

the most desirable alternative given up as the result of decision

summer job where you normally earn $6,000 for the summer. Your tuition cost is $3,000, books and supplies cost $300, and room and board cost $1,000. The opportunity cost of attending summer school is

$6,000

scarcity vs shortage

shortages are temporary while scarcity always exists

the most fundamental economic problem is

scarcity

every decision involves_______, or alternatives given up in favor of the choice selected?

trade-offs

why are goods and services scarce?

all of resources to make goods and services are scarse

resources are

scarce for households and scarce for economies

when a limited amount of resources are available, consumers must

ch

example of a shortage rather than scarcity

a sudden increase in demand for masks causing them to sell out

a country that chooses to invest more in military defense rather than education is making a

trade-off

why do trade-offs exist in economic decision-making?

because individuals and societies must make choices due to scarcity

trade-off example

student decides to study instead of going to a movie