Question

directions: fill in the outline below. filling in the blanks will help you as you read and study chapter 1.

1. section 1: scarcity and the factors of production

a. scarcity

1. from economics, we learn that people have to make when they are faced with limited.
2. all people have, which are things that are necessary to survive.
3. most people have, which are things that may improve their lives.
4. physical things that people produce are
5. actions performed for a fee are
6. limited resources are the cause of a temporary low supply of an item is called a.

b. entrepreneurs and factors of production

1. an brings together the factors of production to make new or improved goods or services.
2. the factors of production are, and.
3. natural resources such as oil and forests are included in the factor called.
4. the work people do is called.
5. buildings and tools are capital. a workers skills are called capital.

Explanation:

In economics, scarcity leads to choices. Necessities are for survival, while wants enhance life. Goods are physical products, services are actions for a fee. Scarcity is due to limited resources; a shortage is a temporary low supply. An entrepreneur combines production factors (land, labor, capital). Land includes natural resources. Labor is work done. Physical capital is buildings/tools; human capital is worker skills.

Answer:

1. choices; resources
2. needs
3. wants
4. goods
5. services
6. scarcity; shortage

B. 1. entrepreneur

1. land; labor; capital
2. land
3. labor
4. physical; human