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.


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