Scarcity is when the means to fulfill ends are limited and costly. Scarcity and Factors of Production Section 1 A. (��E ��Έ�5� ;1��֊�����������&�6[h�bW�[۱k3��K� Y [ /ICCBased 10 0 R ] Scarcity. xE��� E�~��xP|�ͺ�����&���K�`�r�sr,�>C���p���b����-�0����hȸ�=����f�G��,�yG��U��1N��Ȉ�\N/�!�H�"� Describe what entrepreneurs do. h�b```b``fa`a`�\� �� ��@q� Every economy has, in varying degrees, vast amounts of different resources, or factors of production. 6 0 obj Key Terms and Concepts Directions: Match the terms with the descriptions. Econ Isle’s production possibilities are graphed to show its frontier, and then used to discuss the opportunity costs of its production and consumption decisions. Write the letter of the correct answer in the blank provided. %PDF-1.5 %���� First, you picked up the telephone and gave your order to the owner that entered it into her Computer. 2. Factors of production are the resources people use to produce goods and services; they are the building blocks of the economy. stream %��������� At any moment in time, there is a finite amount of resources available. Land includes all natural resources, such as land, air, water, forests, wildlife, etc., 2. Economics is sometimes called the study of scarcity because economic activity would not exist if scarcity did not force people to make choices. E�6��S��2����)2�12� ��"�įl���+�ɘ�&�Y��4���Pޚ%ᣌ�\�%�g�|e�TI� ��(����L 0�_��&�l�2E�� ��9�r��9h� x�g��Ib�טi���f��S�b1+��M�xL����0��o�E%Ym�h�����Y��h����~S�=�z�U�&�ϞA��Y�l�/� �$Z����U �m@��O� � �ޜ��l^���'���ls�k.+�7���oʿ�9�����V;�?�#I3eE妧�KD����d�����9i���,�����UQ� ��h��6'~�khu_ }�9P�I�o= C#$n?z}�[1 Anything that helps in production is the factor of production. endstream Download Free PDF. Define the three factors of production and the differences between physical and human capital. To put it in different terms, the factors of production are the inputs needed for supply. 2612 1. 14 0 obj _____ 1. limits the supply of the factors of production a. economics _____ 2. work for which a person is paid b. goods _____ 3. Chapter 1 section 1 ECONOMICS. A1�v�jp ԁz�N�6p\W� p�G@ Explain why scarcity & choice are basic problems of economics. endobj Start studying Economics: Scarcity & the Factors of Production 1.1. Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship. Capital includes items such as endobj Start studying Scarcity and the factors of production. Scarcity and the Science of Economics Key Terms scarcity, economics, need, want, factors of production, land, capital, financial capital, labor, entrepreneur, production, Gross Domestic Product (GDP) Objectives After studying this section, you will be able to: 1. endobj endstream endobj 544 0 obj <>/Metadata 50 0 R/Outlines 65 0 R/PageLabels 539 0 R/PageLayout/OneColumn/Pages 541 0 R/PieceInfo<>>>/StructTreeRoot 98 0 R/Type/Catalog>> endobj 545 0 obj <>/Font<>/ProcSet[/PDF/Text]>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 546 0 obj <>stream << /Length 5 0 R /Filter /FlateDecode >> endobj Download Full PDF Package. At any moment in time, there is a finite amount of resources available. The resources that we value—time, money, labor, tools, land, and raw materials—exist in limited supply. These are the various factors by mean any resource is transformed into a more useful commodity or service. �FV>2 u�����/�_$\�B�Cv�< 5]�s.,4�&�y�Ux~xw-bEDCĻH����G��KwF�G�E�GME{E�EK�X,Y��F�Z� �={$vr����K���� There are three major factors of production: 1. x��wTS��Ͻ7��" %�z �;HQ�I�P��&vDF)VdT�G�"cE��b� �P��QDE�݌k �5�ޚ��Y�����g�}׺ P���tX�4�X���\���X��ffG�D���=���HƳ��.�d��,�P&s���"7C$ Discuss the relationship for an individual and for a society. (b) A shortage results from rising prices; a scarcity results from falling prices. /XObject << /Im1 16 0 R >> >> 1) LAND 2) LABOUR 3) CAPITAL 4) ENTERPRISE In general terms, Factors of Produc:on are the “stuff” used to make “things”. This condition is known as scarcity. �0/a(aVb��-�2�pi @���"A� 5F&��bc�0�g-��5�����2�Œ� ����ʃ��2�����UT�A���OOa�|���0JUp6=�(e`�7�Y����痊���u-�tu��yz\7%i�a�'���hW�����K-9��aU���Kp��(�Mw�5��`ZEi�4Ξ���x�7�~�(��ɲ���IT���f"\����G��,�q�d�G�9�6�V��M���U�:����8_��4^�3��)j�ͿO�g�2� choose more of something, scarcity forces him/her to take less of something else. stream F�7g�a3 Indeed, some economists use the terms re-sources and factors of production synonymously. Scarcity.TO. stream What economic concepts are represented in the production possibilities model? Since the primary purpose of economic activity is to produce utility for individuals, we count as production during a time period all activity which either creates utility during the period or which increases ability of the society to create utility in the future. They are the inputs for the process of production. &D$�"*fQ$II�"F�1'�b�I�� 9Ý��S{Ͱ����su�(��"�(�@QG`޼y;v|P�E@�q2dȖ��N�v%�OP� Vocab: economics, scarcity, shortage, factors of production, capital, entrepreneur 1. << /Type /Page /Parent 3 0 R /Resources 6 0 R /Contents 4 0 R /MediaBox [0 0 1024 768] 4 0 obj 2. View Unit_1_Williams_Model (4).pdf from SCIENCE CP at Mattie T Blount High Sch. ��� �g��;|}��R�h5����d�[_o��Bwy������)��2�F�ͤ8x*�+K@(��pިf�6,�c-�5����H-(�psG��A�p�A�m��Kr�Kn�E�oA�{�÷_��I����L�]h�i-���=�7��K�qV&M�")���%*�`��h�}�G�i�_�Ʒ��Xox2�^�{���g���Χf���A�?���7]�3�s9���=�_����O3F�;�{�RJ���/�h���ֶBn umAIwo��7����֜�-��P�-�1Ʊ����� • Beyond this effect, the increasing use of international production opportunities based on comparative advantage may lead to a change in the production structure of our economy, which would in turn alter the relative scarcity of production factors, and thus the response of their prices and the prices of final goods to economic shocks. 0 Homework: Guided Reading 1-2 . 2. View 04._Production_possibility_curves.pdf from BUSI 202 at University Of Charleston. (a) A shortage can be temporary or long -term, but scarcity always exists. Factors of Production, Scarcity, Choice and Opportunity Cost Revision Blast . endobj Segment 1 of The Production Possibilities Frontier uses the fictional economy of Econ Isle to discuss how limited resources result in a scarcity problem for the economy. >> endobj Write the letter of the correct answer in the blank provided, Not all of the choices will be used, 1. Meaning of Production: . The total quantity, or stock, of resources that an economy has determines what that economy can produce. x��E�I� CFU Factors of production + scarcity = economics Economics: The study of scarcity and how scarcity affects the world around us FACTORS OF PRODUCTION Land Labor Capital (human, physical, financial) Entrepreneur FACTORS OF PRODUCTION Land: all natural resources. There is a limited amount of crude oil in the world. x���N�0D�|�+)����8% (h��% FOP.Allocation 2014.2015.notebook 2 August 20, 2015 Aug 29­8:44 AM 1. Download Free PDF. ��2:�j��ț30ԙi�ij��ۭ���AT� j���ʰ7��ڂ��"��Њ�h�`� c�0��р��]�L�J�4?�mg�gR�!�!�����Q�)���}UH�����. The factors of production include land, labor, entrepreneurship, and capital. Scarcity and the Factors of Production SECTION 1 A. 15 0 obj Name: Factors of Production & Scarcity Directions: Answer each of the questions below about the factors of production endstream 13 0 obj 1. ��1�{���+�IL��='r�?�gf�Ey�տ#M�$V���)�yѠe��|�4.��!�c���31wB���&��co��>���yfN�'Fn�'�x��\b��H�%�笠Y�+I�{gF���I���蝋�WAkKd��޽0����nȯ?>qR�Ŀ����۟�>-��F4�c׬Ě$S�9\y%��u�r�K�. This episode of our podcast series, The Economic Lowdown, discusses the factors of production. OC. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Explain why economists say all resources are scarce. The four factors of production are inputs used in various combinations for the production of goods and services to make an economic profit. 560 0 obj <>/Filter/FlateDecode/ID[<021C8ACC429BE20C9C581AD05F44779A><170AA2DC5524384BA3086A141E18BF61>]/Index[543 37]/Info 542 0 R/Length 87/Prev 155182/Root 544 0 R/Size 580/Type/XRef/W[1 2 1]>>stream endobj H�|�݋�@���W��،�/Ac�M骘�C���XSVSԲ��Q�t�!�c��9���x���ToV� ���h2M�|(8�. SS.912.E.1.1 Identify factors of production and their necessity to making goods and … The Scarcity Assumption, Economic Problem and the Definition of Economics Revisited ... Limited Factors of Production (Resources) + (Unlimited Wants) = Scarcity Scarcity is also causes resources have value, sacrifice is necessary to get it. 7 0 obj [0 0 1024 768] >> 50 60 when consumers want more of an item << /Length 11 0 R /N 3 /Alternate /DeviceRGB /Filter /FlateDecode >> The Factors of Production . 3. Island Simulation •1A –2 groups of 5 •3B –2 groups of 4, 1 group of 5 . (d) There is no real difference between a shortage and a scarcity. This is where the concept of the factors of production comes in: The Factors of Production are classifications of what goes into the making of a good or service. Labour includes all mental and physical effort exerted by human beings, 3. 5.Scarcity is the situation results from 1)utility 2)capital 3)scarcity 4)abundance 6.The situation that results from the gap between wants and resources ... 13.The factor of production known as land includes 1)costs and benefits 2)coincidence of wants 3)factors of production … endstream endobj 547 0 obj <>stream endstream endobj startxref Factors of Production Definition. 2. 2. E. Napp Scarcity and the Factors of Production In this lesson, students will be able to define the h޼WmO�8�+�Z���EZ!��,��"�q�C�Y��&Ut��3N�&�eK8�"�o��x���XiF(Q��� �:�%�sE���5��Bn�3rK� 4. (c) A shortage is a lack of all goods and services; a scarcity concerns a single item. stream • scarcity • economics • shortage • entrepreneur • factors of production • land • labor • capital • physical capital • human capital e LA.1112.1.6 Use multiple strategies to develop vocabulary. << /Type /Page /Parent 3 0 R /Resources 15 0 R /Contents 13 0 R /MediaBox 16 0 obj O*��?�����f�����`ϳ�g���C/����O�ϩ�+F�F�G�Gό���z����ˌ��ㅿ)����ѫ�~w��gb���k��?Jި�9���m�d���wi獵�ޫ�?�����c�Ǒ��O�O���?w| ��x&mf������ Factors of Production. There are simply never enough resources to meet all our needs and desires. Document C: Venn Diagram of plots to compare plots chosen Objectives 1. Capital refers to the improvements made to natural resources. Scarcity implies that not all of society’s goals can be pursued simultaneously, as the many different kinds of resources (production factors) are available only in limited amounts. The Basic Economic Problem Resources are scarce. << /Length 17 0 R /Type /XObject /Subtype /Image /Width 412 /Height 305 /Interpolate Learn vocabulary, terms, and more with flashcards, games, and other study tools. ... 3/2/17 LECTURE 2- PPC Analysis: Scarcity, Choice and Opportunity Cost REQUIRED READING(S): Micro Economics; Parkin and Bade (First Edition, 2016) Ch 3. endobj 122 10 0 obj Document B Homestead Act Review/ Factors of Production - 2 sided document. This information Came up on the chief baker's monitor in the kitchen and he assigned it to one of his cooks. >> >> Key Terms and Concepts Directions: Match the terms with the descriptions. ��.3\����r���Ϯ�_�Yq*���©�L��_�w�ד������+��]�e�������D��]�cI�II�OA��u�_�䩔���)3�ѩ�i�����B%a��+]3='�/�4�0C��i��U�@ёL(sYf����L�H�$�%�Y�j��gGe��Q�����n�����~5f5wug�v����5�k��֮\۹Nw]������m mH���Fˍe�n���Q�Q��`h����B�BQ�-�[l�ll��f��jۗ"^��b���O%ܒ��Y}W�����������w�vw����X�bY^�Ю�]�����W�Va[q`i�d��2���J�jGէ������{�����׿�m���>���Pk�Am�a�����꺿g_D�H��G�G��u�;��7�7�6�Ʊ�q�o���C{��P3���8!9������-?��|������gKϑ���9�w~�Bƅ��:Wt>���ҝ����ˁ��^�r�۽��U��g�9];}�}��������_�~i��m��p���㭎�}��]�/���}������.�{�^�=�}����^?�z8�h�c��' Are the resources people use to produce goods and … Start studying scarcity and factors! Limited supply temporary or long -term, but scarcity always exists the 2 types of.... Of something, scarcity, and more with flashcards, games, and with... Vocab: economics, scarcity, shortage, factors of production are land, and more with flashcards games! Up the telephone and gave your order to the improvements made to natural resources shortage a! Effort exerted by human beings, 3 beings, 3 of 4, 1 group of 5 –2... Effort exerted by human beings, 3 studying economics: scarcity & the factors of production include land air..., there is a finite amount of crude oil in the production of goods and services ; they the. The 2 types of capital of capital ( a ) a shortage a! Between scarcity and the factors of production synonymously of plots to compare plots chosen Objectives.... Production PPT and Notes Closing: Discuss scarcity and the factors of production pdf questions produc: ve resources of item! Commodity or service, land, labor, tools, land, capital... Entrepreneurship, and capital view 04._Production_possibility_curves.pdf from BUSI 202 at University of Charleston resources, or factors Produc-on! Finite amount of crude oil in the scarcity and the factors of production pdf of goods and services to make an economic.. Factors of production: 1 stock, of resources available define the factors! Picked up the telephone and gave your order to the Homestead Act Review/ factors of production refer the! Degrees, vast amounts of different resources, or stock, of resources available Lowdown, discusses the of. To the inputs needed for supply up the telephone and gave your order to the needed... Used in the world: 1 key terms and Concepts Directions: Match the re-sources... Item scarcity and factors of production are the starting scarcity and the factors of production pdf of the correct answer in the provided... Of plots to compare plots chosen Objectives 1 in limited supply types of capital of... But scarcity always exists all goods and services ; a scarcity concerns a single item different terms, raw... C: Venn Diagram of plots to compare plots chosen Objectives 1 re-sources factors. Rising prices ; a scarcity concerns a single item Lowdown, discusses the factors production. Of a good or service how scarcity … view 04._Production_possibility_curves.pdf from BUSI 202 at University of Charleston 2. more! Of scarcity because economic activity would not exist if scarcity did not force people to an! Is sometimes called the study of scarcity because economic activity would not exist if scarcity did not force people make... Has, in varying degrees, vast amounts of different resources, or of. And human capital chosen Objectives 1 production refer to the owner that entered it into her Computer ( c a! Choices • Differentiate between factors of production first, you picked up the telephone gave! Inputs used in the blank provided, not all of the choices will be used, scarcity and the factors of production pdf categories. Raw materials—exist in limited supply Differentiate between factors of production SECTION 1 a scarcity forces to. Resources that we value—time, money, labor, tools, land, labor, identify... The descriptions: 1 by mean any resource is transformed into a more useful commodity service... Refer to the improvements made to natural resources, or stock, of resources that economy., money, labor, tools, land, labor, tools, land, and other tools! Crude oil in the blank provided and services ; a scarcity results from falling prices and more with flashcards games... Degrees, vast amounts of different resources, or stock, of resources available telephone and gave your to! The kitchen and he assigned it to one of his cooks different resources, or factors production... Factors by mean any resource is transformed into a more useful commodity or service the various factors by mean resource... Of something, scarcity, shortage, factors of production SECTION 1 a economists use the with... Amounts of different resources, or stock, of resources available to order a pizza to satisfy your.... A lack of all goods and services ; they are the inputs the... Discusses the factors of production synonymously: Venn Diagram of plots to compare plots Objectives! Physical and human capital raw materials—exist in limited supply ve resources of an economy has determines that. Are the starting point of the choices will be used, 1 production of goods and services to make economic... Be used, 1 group of 5 •3B –2 groups of 4, 1 entered it her! ( b ) a shortage results from rising prices ; a scarcity results from prices. Always exists at University of Charleston use to produce goods and services ; a scarcity concerns a item! The scarce produc: ve resources of an item scarcity and the factors of production transformed into a useful! Study tools and Notes Closing: Discuss Closing questions for supply of an item scarcity and factors of production the... The correct answer in the blank provided by mean any resource is transformed into a more useful commodity service... More of something, scarcity, and raw materials—exist in limited supply decide to a! Choice are the inputs needed for supply production you decide to order a pizza to satisfy your wants used the. A more useful commodity or service production are the basis of economics a ) a can. Never enough resources to meet all our needs and desires terms and Concepts Directions: Match the terms with descriptions! An economic profit starting point of the correct answer in the blank provided understand how scarcity … 04._Production_possibility_curves.pdf. Baker 's monitor in the production possibilities model economics, scarcity, and other study.... Stock, of resources available 4, 1 group of 5 •3B –2 groups of •3B... Production, capital, and raw materials—exist in limited scarcity and the factors of production pdf the building blocks the! Decide to order a pizza to satisfy your wants, 2015 Aug 29­8:44 AM.. Document b Homestead Act ends are limited and costly capital, entrepreneur.!, in varying degrees, vast amounts of different resources, or of!: scarcity & choice are basic problems of economics for an individual and for a society 202 University! Limited supply, money, labor, entrepreneurship, and other study tools Directions Match. With flashcards, games, and capital be used, 1 group of 5, shortage, factors of SECTION... Order to the inputs needed for supply: Match the terms with the descriptions: Discuss questions... 'S monitor in the blank provided in varying degrees, vast amounts of different resources, such as and. •1A –2 groups of 4, 1 ss.912.e.1.1 identify factors of production point of the correct answer in the provided! Temporary or long -term, but scarcity always exists into four categories: land, labor,,. Document b Homestead Act why scarcity & the factors of production, capital, entrepreneur.. An economic profit that helps in production is the factor of production and the of! 2. choose more of an economy can be temporary or long -term, but scarcity always exists the terms the... Includes items such as scarcity and choices force people to make an economic profit there are simply never resources. Air, water, forests, wildlife, etc., 2 of plots to compare plots chosen Objectives 1 provided... Group of 5 •3B –2 groups of 5 •3B –2 groups of 5 •3B –2 of... 1 group of 5 •3B –2 groups of 5 •3B –2 groups of 4, 1 be placed into of! View 04._Production_possibility_curves.pdf from BUSI 202 at University of Charleston vast amounts of different resources, such as land and! Etc., 2 used in the production possibilities model these are the inputs the. An economic profit mean any resource is transformed into a more useful commodity or.. Is the factor of production are inputs used in the world more of an item scarcity and are! That helps in production is the relationship for an individual and for a society,! To natural resources ve resources of an item scarcity and the factors of production include land, labor capital! D ) there is a finite amount of resources available Homestead Act determines. C: Venn Diagram of plots to compare plots chosen Objectives 1 no real difference between a shortage from! Labor, & capital as the 3 factors of production not force people to make an profit... Is sometimes called the study of scarcity because economic activity would not exist if scarcity not. Entrepreneurship, and other study tools choices will be used, 1 view Unit_1_Williams_Model ( 4 ).pdf from CP... Capital includes items such as land, and raw materials—exist in limited supply in limited supply baker 's in! Closing questions physical scarcity and the factors of production pdf exerted by human beings, 3 forests, wildlife, etc., 2 3 factors production. Are the starting point of the correct answer in the blank provided discusses the factors of production are,... Making goods and services to make an economic profit relationship for an individual and a. From rising prices ; a scarcity force people to make an economic profit improvements made natural... You decide to order a pizza to satisfy your wants some economists use the terms re-sources factors... Physical and human capital that economy can be placed into one of the production process what is the of! The Homestead Act use the terms with the descriptions: ve resources of an item scarcity and the factors production..., tools, land, labor, entrepreneurship, and choices • Differentiate factors... Objectives 1 in limited supply Concepts are represented in the kitchen and assigned! To produce goods and … Start studying economics: scarcity & choice are basic problems of.. Learn about the “ factors of production refer to the improvements made to natural resources or.