1.1 - Scarcity and Choice

Economics - study of scarcity and choice

Trade-off - when you give up something to get something else

Individual choices - decisions by individuals about what to do, which necessitate decisions about what not to do

Resource/ Factor of Production - anything that can be used to produce something else

Land - all resources that come from nature such as timber, wind, and petroleum

Labour - effort of workers

Capital - manufactured goods used to make other goods and services

Entrepreneurship - efforst of entrepreneurs in organizing resources for production, taking risks to create new enter prises and innavating to develop new produts and production processes