Resources and Scarcity
Resources - Things people use to make goods or services
o 3 types of resources
1. Land - Natural resources. Minerals, water, etc.
2. Labor - Effort and skills of people
3. Capital - Assets used to make money
The Three Questions of Economics
What should be produced?
Who should receive the product?
How should goods and services be created?
Economies must decide what to produce by
o Considering wants and needs of people
o Evaluating available resources
The labor force is defined
all persons who are qualified and able but not working.
all non-institutionalized persons over age 16 who are working plus those persons who are looking for
only persons who are working.
all persons working plus th