ECON2106_Ch2Pt1 - SCARCITY If a good is scarce relative to...

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SCARCITY If a good is scarce relative to the desire to own it or use it, choices must be made. This is true even if no shortage exists. ______________________ are scarce goods for which the desire to own or use them exceeds their availability at a price of zero. Some examples are: _____________________ are things that satisfy needs or wants. All economic goods are goods, but not all goods are economic goods. __________________________________ is an example of a good that is probably not an economic good. People have essentially unlimited wants, particularly if we include ending world hunger, improved national defense, and space travel and exploration, wants are unlimited. Three fundamental questions each economy must answer: (1) ________________ to produce, (2) ________________ to produce, and (3) _________________ to produce to satisfy some wants. FACTORS OF PRODUCTION _______________ includes water, soil, air, plants, and animals _______________ human work _______________ divided into _________________ capital incl. machinery, factories, computers and _______________ capital incl. knowledge and training, education Consider an auto manufacturer with maximum daily production combinations
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ECON2106_Ch2Pt1 - SCARCITY If a good is scarce relative to...

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