Chapter 1 ‘What is Economics?’Name:________________________Prd:___1.1Key Terms:Scarcity- condition facingall societies because thereare not enough productiveresources to satisfy wantsProductive resources-inputs used to producegoods and services peoplewantEconomics- examines howpeople use their scareresources to satisfy theirunlimited wantsHuman resources- humanefforts, both physical andmental, used to producegoods and servicesLabor- physical and mentalefforts used to producegoods and servicesEntrepreneur- tries to earna profit by developing anew product/finding abetter way to produce anexistingproductNatural resources- the“gifts of nature,” such asland and bodies of waterCapital goods- includes allhuman creations used toproduce; like sewingmachinesService- intangible thingthat can satisfy humanneedsQuestions:1.What is the central problem you face when you make economic choices?
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2.What are examples of productive resources you use in your life?
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3.How can you tell whether the food you eat from your refrigerator is scarce?
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4. Identify each of the following as a human resource, natural resource, or capital good:a. a hammer used to build a wooden box – capital goodb. the tree that was cut down to make lumber to build a wooden box – natural resourcec. the effort used to nail lumber together to make a wooden box – human resource5.Draw a pie chart similar to the chart shown here that demonstrates how you spend yourmoney. To construct your pie chart, draw a circle and divide it into slices. Each slice representsthe spending categories of your income, by percentages. Label each slice with the spendingcategories of your income (allowance), by percentages. Label each slice with a spendingcategory, and identify it as either a good or a service.
