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
Raw Materials (land): coal, timber, steel, water, fossil
Labor: time of workers
Physical Capital: human-made goods used to make other
goods (equipment, machinery, etc.)
Human Capital: experience, training, education of labor
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.
- Spring '07