Economics 101
basic concepts of economics..
1. goods and services
2. factors of production
3. scarcity
4. supply and demand theory
Goods and services are the products of our economic system.
Entrepreneurs respond to consumers’ wants and needs with goods and services
The four basic factors of production:
1. Land (Nat. Resources on and beneath)
2. Labor (human effort)
3. Entrepreneurship (Ideas and Decisions)
4. Capital ($, Equip., Factory, and Tools needed)
Scarcity …. Giving up one thing to gain another.
Demand is Quantity of goods and service consumers are willing and able to buy.
Demand Curve
Shows the relationship between price and the quantity demanded