Basic economic concepts

1. Basic Economic Concepts
Know 3 Economics Questions
Know Factors of Production
Know Basic Economic Vocabulary

2. 3 Economic
Questions
What to Produce?
How to Produce?
Whom to Produce For?

3. Factors of Production
Land (Any Natural Resource)
Labor (Workers)
Capital (Money, Machines, Tools)
Entrepreneurship (Starter)

4. Economic Products
Goods and services that are
useful, scarce, and
transferable
Command a price because
they are scarce

5. Services
Worked performed by
someone
–Ex: Home repair, concerts,
haircuts

6. Goods
Consumer goods- Goods with final
use by individuals
Capital goods- Goods that are
used to produce other goods

7. Value and Paradox of
Value
Value- Worth in dollars and
cents
Paradox of Value- Idea that
necessary items may have
very low value while unneeded
items may have high value

8. Utility
SATISFACTION

9. Wealth
Accumulation of resources and
things that are tangible in the
economy

10. Economic Growth
Occurs when nation’s total
output increases over time

11. Division of Labor
Divide labor so individual
workers do fewer tasks then
before
Specialization- Workers begin
to do tasks they do more
efficiently

12. Scarcity
Created from unlimited wants
and needs and limited
resources
Basic and Biggest Economic
Problem

13. DO YOU KNOW?
3 Economics Questions???
4 Factors of Production???
Terms like:
– Scarcity
– Division of Labor
– Economics Growth
– Paradox of Value
– Wealth