This document introduces some basic economic concepts. It explains that there are 3 fundamental economic questions about what to produce, how to produce, and for whom to produce. It also outlines the 4 factors of production as land, labor, capital, and entrepreneurship. Finally, it defines some key terms and concepts in economics including scarcity, goods, services, utility, wealth, economic growth, and the division of labor.

1. Basic Economic Concepts
Know 3 Economics Questions
Know Factors of Production
Know Basic Economic Vocabulary

2. 3 Economic
Questions
What to Produce?
How to Produce?
Whom to Produce For?

3. Factors of Production
Land (Any Natural Resource)
Labor (Workers)
Capital (Money, Machines, Tools)
Entrepreneurship (Starter)

4. Economic Products
Goods and services that are
useful, scarce, and
transferable
Command a price because
they are scarce

5. Services
Worked performed by
someone
–Ex: Home repair, concerts,
haircuts

6. Goods
Consumer goods- Goods with final
use by individuals
Capital goods- Goods that are
used to produce other goods

7. Utility
SATISFACTION

8. Wealth
Accumulation of resources and
things that are tangible in the
economy

9. Economic Growth
Occurs when nation’s total
output increases over time

10. Division of Labor
Divide labor so individual
workers do fewer tasks then
before
Specialization- Workers begin
to do tasks they do more
efficiently

11. Scarcity
Created from unlimited wants
and needs and limited
resources
Basic and Biggest Economic
Problem

12. DO YOU KNOW?
3 Economics Questions???
4 Factors of Production???
Terms like:
– Scarcity
– Division of Labor
– Economics Growth
– Paradox of Value
– Wealth