| A | B |
|---|
| scarcity | This principle states that there are limited resources for satisfying unlimited wants and needs. |
| Example of scarcity for a business | A restaurant owner may forgo plans for a costly new décor to have more money to put into kitchen equipment. |
| Example of scarcity for a city government | City leaders might decide to cut expenses for most services to be able to hire more police officers. |
| When dealing with scarcity, what is it important to think about? | The best way to use the item that is in short supply |
| Factors of Production | All the economic resources necessary to produce a society's goods and services. |
| Natural Resources | Raw Materials from nature that are used to produce goods. |
| Examples of natural resources | trees, water and grain |
| Examples of renewable natural resources | wheat and cattle |
| Examples of nonrenewable natural resources | coal, iron, and oil |
| labor resources | People who make the goods and services for which they are paid. |
| capital resources | The things used to produce goods and services such as buildings, materials, and equipment |
| Examples of capital resources | delivery trucks, super markets, cash registers, and medical supplies |
| Entrepreneurial resources | Are used by the people who recognize opportunities and start businesses |
| entrepreneur | An individual who undertakes the creation, organization, and ownership of a business. |
