At any moment in time, there is a finite amount of resources available. x��E�I� What economic concepts are represented in the production possibilities model? 10 0 obj typically called factors of production. CFU Factors of production + scarcity = economics Economics: The study of scarcity and how scarcity affects the world around us FACTORS OF PRODUCTION Land Labor Capital (human, physical, financial) Entrepreneur FACTORS OF PRODUCTION Land: all natural resources. �� ~��s��u��z������>|���"�q��慲e�bQv�С_�~[�S>T��1z(��"P���nD���!4��t颜V��K��(�#���;>��(;�i;�|ioE w��r�GsE`�[email protected]ǚ/��"�䎀rZ��h�"��X(��X�U��PN��U��k�����"�;�i�㣹��"�c!���c͗�[email protected]|4WPv,��v���� 122 endstream endobj startxref %PDF-1.5 %���� Scarcity is when the means to fulfill ends are limited and costly. Students will understand how scarcity … A1�v�jp ԁz�N�6p\W� p�[email protected] [7A�\�SwBOK/X/_�Q�>Q�����G�[��� �`�A�������a�a��c#����*�Z�;�8c�q��>�[&���I�I��MS���T`�ϴ�k�h&4�5�Ǣ��YY�F֠9�=�X���_,�,S-�,Y)YXm�����Ěk]c}džj�c�Φ�浭�-�v��};�]���N����"�&�1=�x����tv(��}�������'{'��I�ߝY�)� Σ��-r�q�r�.d.�_xp��Uە�Z���M׍�v�m���=����+K�G�ǔ����^���W�W����b�j�>:>�>�>�v��}/�a��v���������O8� � Explain how scarcity affects the factors of production. Factors of Production, Scarcity, Choice and Opportunity Cost Revision Blast . 12 0 obj endobj •Scarcity and Factors of Production PPT and Notes Closing: Discuss closing questions. 3. E�6��S��2����)2�12� ��"�įl���+�ɘ�&�Y��4���Pޚ%ᣌ�\�%�g�|e�TI� ��(����L 0�_��&�l�2E�� ��9�r��9h� x�g��Ib�טi���f��S�b1+��M�xL����0��o�E%Ym�h�����Y��h����~S�=�z�U�&�ϞA��Y�l�/� �$Z����U �[email protected]��O� � �ޜ��l^���'���ls�k.+�7���oʿ�9�����V;�?�#I3eE妧�KD����d�����9i���,�����UQ� ��h��6'~�khu_ }�9P�I�o= C#$n?z}�[1 2. The resources that we value—time, money, labor, tools, land, and raw materials—exist in limited supply. F�7g�a3 The various factors of production refer to the inputs used in the production of goods and services. Download Free PDF. The four factors of production are inputs used in various combinations for the production of goods and services to make an economic profit. (b) A shortage results from rising prices; a scarcity results from falling prices. h޼WmO�8�+�Z���EZ!��,��"�q�C�Y��&Ut��3N�&�eK8�"�o��x���XiF(Q��� �:�%�sE���5��Bn�3rK� << /Length 17 0 R /Type /XObject /Subtype /Image /Width 412 /Height 305 /Interpolate 15 0 obj Scarcity and the Science of Economics Key Terms scarcity, economics, need, want, factors of production, land, capital, financial capital, labor, entrepreneur, production, Gross Domestic Product (GDP) Objectives After studying this section, you will be able to: 1. 3. Explain the fundamental economic problem. 16 0 obj Econ Isle’s production possibilities are graphed to show its frontier, and then used to discuss the opportunity costs of its production and consumption decisions. E. Napp Scarcity and the Factors of Production In this lesson, students will be able to define the endobj Ⱦ�h���s�2z���\�n�LA"S���dr%�,�߄l��t� 2612 2. SS.912.E.1.1 Identify factors of production and their necessity to making goods and … Key Terms and Concepts Directions: Match the terms with the descriptions. << /Length 14 0 R /Filter /FlateDecode >> 2. (d) There is no real difference between a shortage and a scarcity. The factors of production are land, labor, capital, and entrepreneurship. << /Length 11 0 R /N 3 /Alternate /DeviceRGB /Filter /FlateDecode >> Define the three factors of production and the differences between physical and human capital. << /Length 5 0 R /Filter /FlateDecode >> 50 60 when consumers want more of an item Capital includes items such as The Factors of Production . These are the various factors by mean any resource is transformed into a more useful commodity or service. %PDF-1.3 ��1�{���+�IL��='r�?�gf�Ey�տ#M�$V���)�yѠe��|�4.��!�c���31wB���&��co��>���yfN�'Fn�'�x��\b��H�%�笠Y�+I�{gF���I���蝋�WAkKd��޽0����nȯ?>qR�Ŀ����۟�>-��F4�c׬Ě$S�9\y%��u�r�K�. endobj This condition is known as scarcity. Download Full PDF Package. Learn vocabulary, terms, and more with flashcards, games, and other study tools. endobj 2 0 obj 560 0 obj <>/Filter/FlateDecode/ID[<021C8ACC429BE20C9C581AD05F44779A><170AA2DC5524384BA3086A141E18BF61>]/Index[543 37]/Info 542 0 R/Length 87/Prev 155182/Root 544 0 R/Size 580/Type/XRef/W[1 2 1]>>stream Chapter 1 section 1 ECONOMICS. The factors of production are more suitable in the production of good Y. stream 6 0 obj This is where the concept of the factors of production comes in: The Factors of Production are classifications of what goes into the making of a good or service. _____ 1. limits the supply of the factors of production a. economics _____ 2. work for which a person is paid b. goods _____ 3. They are the starting point of the production process. Island Simulation •1A –2 groups of 5 •3B –2 groups of 4, 1 group of 5 . Explain why scarcity and choice are the basis of economics. Factors of production are the resources people use to produce goods and services; they are the building blocks of the economy. 4 0 obj endobj Scarcity and the Factors of Production SECTION 1 A. H�|�݋�@���W��،�/Ac�M骘�C���XSVSԲ��Q�t�!�c��9���x���ToV� ���h2M�|(8�. 0 They are the inputs for the process of production. endstream endobj 547 0 obj <>stream Meaning of Production: . 4. Explain why economists say all resources are scarce. Explain the role of entrepreneurs. 4�.0,` �3p� ��H�[email protected]�A>� The factors of production include land, labor, entrepreneurship, and capital. Explain why scarcity & choice are basic problems of economics. Segment 1 of The Production Possibilities Frontier uses the fictional economy of Econ Isle to discuss how limited resources result in a scarcity problem for the economy. Economics is sometimes called the study of scarcity because economic activity would not exist if scarcity did not force people to make choices. Let us make an in-depth study of the meaning, definition, types and factors of production. ��� �g��;|}��R�h5����d�[_o��Bwy������)��2�F�ͤ8x*�[email protected](��pިf�6,�c-�5����H-(�psG��A�p�A�m��Kr�Kn�E�oA�{�÷_��I����L�]h�i-���=�7��K�qV&M�")���%*�`��h�}�G�i�_�Ʒ��Xox2�^�{���g���Χf���A�?���7]�3�s9���=�_����O3F�;�{�RJ���/�h���ֶBn umAIwo��7����֜�-��P�-�1Ʊ����� endobj (c) A shortage is a lack of all goods and services; a scarcity concerns a single item. &D$�"*fQ$II�"F�1'�b�I�� 9Ý��S{Ͱ����su�(��"�(�@QG`޼y;v|P�[email protected]�q2dȖ��N�v%�OP� Discuss the relationship for an individual and for a society. (a) A shortage can be temporary or long -term, but scarcity always exists. Describe what entrepreneurs do. h�b```b``fa`a`�\� �� ��@q� 14 0 obj • scarcity • economics • shortage • entrepreneur • factors of production • land • labor • capital • physical capital • human capital e LA.1112.1.6 Use multiple strategies to develop vocabulary. Factors of Produc-on The scarce produc:ve resources of an economy can be placed into one of the four following headings. [ /ICCBased 10 0 R ] Capital refers to the improvements made to natural resources. Review of Economic Principles • Explain relationship between scarcity and choices • Differentiate between %%EOF << /ProcSet [ /PDF /ImageB /ImageC /ImageI ] /ColorSpace << /Cs1 7 0 R >> Learn vocabulary, terms, and more with flashcards, games, and other study tools. << /Type /Page /Parent 3 0 R /Resources 15 0 R /Contents 13 0 R /MediaBox endobj There are three major factors of production: 1. OC. 7 0 obj stream Indeed, some economists use the terms re-sources and factors of production synonymously. ��K0ށi���A����B�ZyCAP8�C���@��&�*���CP=�#t�]���� 4�}���a � ��ٰ;G���Dx����J�>���� ,�_“@��FX�DB�X$!k�"��E�����H�q���a���Y��bVa�bJ0՘c�VL�6f3����bձ�X'�?v 6��-�V`�`[����a�;���p~�\2n5��׌���� �&�x�*���s�b|!� Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship. Write the letter of the correct answer in the blank provided, Not all of the choices will be used, 1. choose more of something, scarcity forces him/her to take less of something else. 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