Parenting Skills Positive Parenting

In: Other Topics

Submitted By chance202
Words 853
Pages 4
Chapter 1: What is Economics?
Section 1

Key Terms
• need: something essential for survival
• want: something that people desire but that is not necessary for survival
• goods: the physical objects that someone produces • services: the actions or activities that one person performs for another
• scarcity: the principle that limited amounts of goods and services are available to meet unlimited wants
Chapter 1, Section 1

Copyright © Pearson Education, Inc.

Slide 2

Key Terms, cont.
• economics: the study of how people seek to satisfy their needs and wants by making choices
• shortage: a situation in which consumers want more of a good or service than producers are willing to make available at particular prices
• entrepreneur: a person who decides how to combine resources to create goods and services
• factors of production: the resources that are used to make goods and services

Chapter 1, Section 1

Copyright © Pearson Education, Inc.

Slide 3

Key Terms, cont.
• land: all natural resources used to produce goods and services
• labor: the effort people devote to tasks for which they are paid
• capital: any human-made resource that is used to produce other goods and services
• physical capital: the human-made objects used to create other goods and services
• human capital: the knowledge and skills a worker gains through education and experience
Chapter 1, Section 1

Copyright © Pearson Education, Inc.

Slide 4

Chapter 1, Section:
What is Economics?
EQ: How does scarcity force people to make economic choices?
– Scarcity forces all of us to make choices by making us decide which options are most important to us.
– The principle of scarcity states that there are limited goods and services for unlimited wants. Thus, people need to make choices in order to satisfy the wants that are most important to…...

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