IB HW #1

IB HW #1 - Greg Kalai IB Economics Drogaris Definitions:...

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Greg Kalai IB Economics Drogaris Definitions: Factors of production: they are the resources (human, machinery) utilized (made use of) in order to produce goods. These factors are divided into four categories Land All kinds of natural resources provided by Mother Earth but utilized by individuals, corporations, ect… Labor Physical work done by human beings such as construction work Capital Investments in machinery, tools or any other manmade object with the aim of improving production (and perhaps cut off human resources costs) Entrepreneurship An entrepreneur is the conduit between the three resources mentioned above; he/she puts them to work by catalyzing a cycle, where supply and demand are met (preferably equally, but not always) with the risk of loss or the success. Scarcity: insufficient supply of a resource. In a paradoxical world where humans are infinitely needy, resources are unfortunately finite. It is implied by economists that nothing is for free; there are costs and benefits to everything. A solution to scarcity
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This document was uploaded on 10/26/2011 for the course PLIR 2050 at UVA.

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IB HW #1 - Greg Kalai IB Economics Drogaris Definitions:...

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