Discusses the Foundations of Economics, Scarcity, Choice, Opportunity Cost, Utility & Basic Economic Problem, as well as The Factors of Production Explained
Foundations of Economics
Economics is a social science that studies how people interact with each other.
Economics examines the allocation of scarce resources to meet unlimited wants and needs.
There is a distinction between goods and services, needs and wants, and economic goods and free goods.
Opportunity cost is what is sacrificed to obtain something else.
Basic economic questions include what, how, and for whom to produce.
Factors of production include land, labor, capital, and entrepreneurship.
Production possibilities curves illustrate efficiency and production choices.
Microeconomics and macroeconomics, as well as positive and normative economics, are main fields in economics.
Free markets and planned economies each have their advantages and disadvantages.
Economic growth differs from economic development.
Sustainable development is an important goal in economics.
Scarcity, Choice, Opportunity Cost, Utility, and the Basic Economic Problem
Scarcity occurs when limited resources cannot meet all desires.
Choice and opportunity cost are key concepts in economics.
Utility measures the satisfaction gained from consuming goods or services.
The basic economic problem involves decisions about what to produce, how to produce it, and for whom it is produced.
Economic systems differ in how they make these decisions.
Factors of Production
Land includes all natural resources.
Labor refers to human effort in production.
Capital includes tools and technologies used in production.
Entrepreneurship involves innovation and creativity in organizing production.
