Eco Ch02

Eco Ch02 - 2.1 Scarcity Exists when human wants exceed...

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2.1 Scarcity: Exists when human wants exceed available resources. We satisfy our unlimited resources in a world of limited resources. But if it is not desirable, it is not scarce. Resources: Labor: The physical and mental (human) effort used in the production of goods and service. Land: The natural resources used in the production of goods and service. Capital: The equipment and structures used to produce goods and services. Human capital: The productive knowledge and skill people receive from education on-the-job-training. Entrepreneurship: The process of combing labor, land, and capital to produce goods and services. It’s always looking for new ways to improve production techniques or to creat new products. Goods: Items we value or desire. Tangible goods: reach out and touch Intangible goods: cannot reach out and touch, such as friendship and knowledge. Service: Intangible acts. Economic goods: Scarce goods created from scarce resources.
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This note was uploaded on 02/10/2011 for the course ECO 2251 taught by Professor Kirkland during the Spring '09 term at Troy.

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Eco Ch02 - 2.1 Scarcity Exists when human wants exceed...

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