| A | B |
|---|
| Scarcity | not enough resources relative to demand |
| Thomas Malthus | Doomsday Economist - population will increase exponentially, eventually outstrip the food supply causing famine |
| Economics | the study of making choices |
| Resources/Factors of Production | In order to build/produce anything, it takes land, labor and capital, in varying quantities |
| Land | anything produced/found in nature |
| Labor | human input to production/human input to produce services |
| Capital | man-made inputs to production |
| Monetary Capital | represents value (cash, checks, savings, interest) |
| Real Capital | actual value (building, chain saw, lumber, jewelry story inventory) |
| Production | creation of utility, doing something useful, the more useful it is the more people want it and scarcity of the item increases, which increases the price |
| Utility | usefulness |
| Law of Diminishing Utility | the more you have of something, the less utility it has to you, the less value it has |
| Demand | willingness and ability to give up something of value in exchange for something of value |
