unfortunately our ability to satisfy these wants is

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Unformatted text preview: unately, our ability to satisfy these wants is Society’s 2-part problem (cont) 4 Resources (a.k.a. factors of production, inputs): the inputs used to make the goods/services that individuals and society desires Raw Materials (land): coal, timber, steel, water, fossil fuels, etc Labor: time of workers Physical Capital: human-made goods used to make other goods (equipment, machinery, etc.) Human Capital: experience, training, education of labor force Entrepreneurship: ability to organize the other inputs, to take the risks SCARCITY 5 Scarcity is the fundamental economic problem Your time is scarce Your income is scarce Only so many hours in a day – what should you do with them? Only so many dollars in your paycheck – how should you spend it? Government revenue is scarce Only so many tax dollars collected – what should the govt. do with it? O...
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This note was uploaded on 02/19/2013 for the course ECON 201 taught by Professor Baker during the Spring '07 term at University of Tennessee.

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