| A | B |
|---|
| scarcity | when society does not have enough resources to produce all the things that people would like to have |
| economics | the study of how people try to satisfy unlimited and competing wants thru the careful use of relatively scarce resources |
| need | a basic requirement for survival: food, clothing, shelter |
| want | something we would like to have but is not necessary to survive |
| factors of production | resources required to produce the things we would like to have: 4 factors are: land, capital), labor, and entrepreneurs |
| land | gifts of nature” natural resources not created by people |
| capital | tools, equipment, machinery, and factories used in the production of goods and services |
| capital good | tool,equipment, or other manufactured good used to produce other goods and services |
| labor | people with all their efforts, abilities, and skills |
| entrepreneur | a risk-taker in search of profits who does |
| GDP gross domestic product | Gross Domestic Product- the dollar value of all final goods, services, and structures produced within a country’s border in a 12 month period |
