Economics:

Econ is the study of how people manage unlimited wants with limited resources

Scarcity exists when we desire more of something we don’t have

A tradeoff is giving something up for something else

The opportunity cost is to do something you really want but it costs something of greater value

you can expand to a lot of different people who share the same interests or goals

Needs are something you have to have for survival

Wants are things that are desired but are not essential to survival

An economy is the production and consumption of things

Goods are something you can put your hands on that benefit you

Services are someone doing something for you that you don’t/can’t do yourself

Resources are the inputs used to produce goods and services

4 categories:

Land: natural resources provided by nature

Labor: the physical and mental effort contributed by people to production

Capital: man-made tools, machinery, and equipment used to create other goods

Entrepreneurship: the initiative and risk taken to combine the other resources into a functioning business (high risk = high reward)

Inputs are the 4 types of resources used in the production process to create goods and services