intro economics

study of the choices people make to satisfy their needs and wants with a limited supply of resources.

goods that are not necessary or not essential: they have a price elastic demand (PED>1) and income elastic demand (YED>1).

are the non-physical, intangible parts of our economy, as opposed to goods, which we can touch or handle, for example: banking, education, transportation

factors of production, used by firms as inputs in the production process to produce goods and services: labour, land, capital, entrepreneurship (entr

physical product we can hold and touch

Goods that are necessary or essential: they have a price inelastic demand (PED<1) and income inelastic demand (YED<1)

factor of production/resource, organises other three factors of production (land, labour, capital) and takes on the risks of success or failure of a business.

having a limited supply of resources to meet the unlimited needs and wants of society

factor of production, itself is produced, i.e. does not occur naturally, including: machinery, tools, equipment, buildings, etc.

factor of production, includes people’s physical and mental effort contributing to production of goods, services

land and agricultural land, and everything under or above the land: minerals, oil reserves, underground water, forests, rivers, lakes