Scarcity, Choice and Opportunity Cost (Ebook Mod 1)

Resources are scarce because they are limited.
Scarcity necessitates CHOICES!

Scarcity:
 
Resources are limited and wants are unlimited--this combination makes resources scarce or limited.

Resources:

Land
-Physical space often referred to as natural resources

Labor
-People working in both physically and mentally intensive jobs.  The investment in labor is called human capital.

Capital
-Equipment that aids or replaces labor for production.

Entrepreneurial Ability
-The person or group of people that organizes labor, land and capital for production

Comments