Basic Economic Concepts PDF

BASIC ECONOMIC CONCEPTS LESSON I (Part 1) BA Core Course 1- Basic Microeconomics 3 ECONOMIC QUESTIONS ✓What to Produce? ✓How to Produce? ✓Whom to Produce For?  FACTORS OF PRODUCTION Land (Any Natural Resource) Labor (Workers) Capital (Money, Machines, Tools) Entrepreneu...

BASIC ECONOMIC CONCEPTS LESSON I (Part 1) BA Core Course 1- Basic Microeconomics 3 ECONOMIC QUESTIONS ✓What to Produce? ✓How to Produce? ✓Whom to Produce For?  FACTORS OF PRODUCTION Land (Any Natural Resource) Labor (Workers) Capital (Money, Machines, Tools) Entrepreneurship (Starter)  ECONOMIC PRODUCTS Goods and services that are useful, scarce, and transferable Command a price because they are scarce  SERVICES Worked performed by someone ✓Example: Home repair, concerts, haircuts  GOODS Consumer goods ✓Goods with final use by individuals Capital goods ✓Goods that are used to produce other goods VALUE AND PARADOX OF VALUE ❑Value- Worth in dollars and cents ❑Paradox of Value- Idea that necessary items may have very low value while unneeded items may have high value  UTILITY ❑Satisfaction  WEALTH Accumulation of resources and things that are tangible in the economy ECONOMIC GROWTH Occurs when the nation’s total output increases over time  DIVISION OF LABOR Divide labor so individual workers do fewer tasks than before Specialization- Workers begin to do tasks they do more efficiently  SCARCITY Created from unlimited wants and needs and limited resources Basic and Biggest Economic Problem  ECONOMICS a social science that studies the optimum allocation, over time, of scarce human and non-human resources among their alternative uses in order to satisfy unlimited human wants and desires. HAVE A GREAT DAY☺