Chapter 1: Economics: The Core Issues Three core issues of economics: WHAT to produce with our limited resources HOW to produce the goods and services we select FOR WHOM goods and services are produced The economy is us. Every individual’s action has an impact on the nation as a whole. Scarcity: The Core Problem Scarcity – the fact that there aren’t enough resources available to satisfy all our desires. Factors of Production – the resources used to produce goods and services. o Land Refers to all natural resources. o Labor Skills and abilities to produce goods and services. Both quantity and quality of human resources are included. o Capital Final goods produced for use in further production. o Entrepreneurship An entrepreneur is a person who sees the opportunity for new or better products and brings together the resources needed for producing them. Its not just a matter of what resources you have, but also of how well you use them.
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This note was uploaded on 04/18/2008 for the course ECON 202 taught by Professor Woroby during the Spring '08 term at Towson.