Econ 1.1-1.2

unlimited wants vs. limited resources - scarcity

Economics - Choices that maximum satisfaction of human economic wants.

Resource - Used to make something else. Limited and wanted. 

Factors of Productions

Land -- timber, water, minerals (nature). Payment: Rent

Labor -- efforts of workers. Payment: Wage

Capital -- three types. Payment: Interest

1 - Physical Capital - tools, machines, equipment

2 - Human Capital - skills of workers (not labor but what labor can do)

3 - Financial Capital - money (not actually a resource but used to purchase      resources)

Entrepreneurship -- risk taking, innovation, organization of resources for production, decision making and problem solving. Not a tangible resource but still scarce. Payment: Profit

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Burgers (Good)

Meat Bun Cheese Grill Worker Box Restaurant Transportation 

1 - Meat Bun Cheese Box

2 - Worker

3 - Grill Transportation Restaurant

4 - Entrepreneur 

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Scarcity

What is going to be made? What to produce?

How is it going to be made? How to produce?

Who is getting it? For whom to produce?

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Economic Systems

Market Economy -- markets (made up of individual consumers and producers), largely make the decisions about what, how and for whom to produce.

Command Economy -- Government makes the decisions about what, how and for whom to produce. 

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Property rights - establish ownership, & grant people the right to trade goods & services with each other. 

Incentive to own things, and make and sell things of value. 

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Work - 1st

College - 2nd (opportunity cost), human capital.

Travel 

Part-time work/college

Stay at home

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