Economy 2.pdf - Jobs In our CE students earn income by performing various classroom jobs Human Resources(Labor Classroom jobs are an example of human

Economy 2.pdf - Jobs In our CE students earn income by...

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Jobs In our CE, students earn income by performing various classroom jobs. Human Resources (Labor): Classroom jobs are an example of human resources, one of the productive resources. Scarcity : Human resources, like other productive resources in a mini-economy, are scarce. They are not freely available in unlimited quantities. Thus, government and business owners must pay wages to obtain human services. Wages : Wages are the income workers receive for labor services. Skilled workers receive higher wages than unskilled workers because their education and training make them more productive and valuable to businesses. Opportunity Cost : When students choose to do one job, they give up the opportunity to do another. The most valued job not chosen is their opportunity cost. All economic decisions have an opportunity cost. Specialization : Student workers specialize in the types of labor they perform. Specializing enables workers to be more productive. Workers who have highly specialized skills are sometimes very scarce and earn much higher wages than other workers.
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Stores Goods and Services : The tangible items offered for sale in stores are goods, as opposed to services. Consumers and Producers : Students purchasing goods and services at the store are consumers. Students who provide goods and services to sell are producers. Inventory : The unsold goods in a store are its inventory. An inventory acts as a buffer against immediate fluctuations in price caused by changes in supply and demand. Scarcity : Goods sold in the store are scarce. That is, at a zero price there are not enough goods to satisfy everyone’s wants. Student income is also scarce. Because student can’t purchase everything they want, they must make consumer choices. Opportunity Cost : When students purchase an item, they give up the opportunity to either save or purchase something else. There is an opportunity cost to every purchasing decision. Price : Because goods and services are scarce, some allocation mechanism is needed to determine who will have the right to use goods and services. In a store, price is the allocation mechanism.
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