Ap micro
Scarcity: limited resources unlimited wants (problem)
PPC: production possibility curve
-impossible (unless more resources or improvement in technology)
-factor of production: land, labor, capital, entrepreneurship
-natural resources: land, timber, oil
-capital resources: machines and equipment needed to produces goods and services
-labor: the risk and knowledge needed
-entrepreneurship: the risk taker
-3 basic economic questions: (forced by all societies)
What to produce?
How to produce?
From whom to produce?
What is microeconomics?
-microeconomics studied the behavior of individuals and firms and how the allocate scarce resources.
-examine small economic units within the economy e.g. individuals, households, firms, industries, the government
What is scarcity?
-scarcity is defined as unlimited wants and limited resources.
-because there aren’t enough resources, people are forced to make trade-offs to meet their wants.
-scarcity is the biggest problem facing all societies.
-what are some resources that are scarce?