Labor Capital – hardcore buildings of tools
Financial capital - money
Production – anything that’s being made. Factors of production and user services, and of using the goods
and services to satisfy the wants is called consumption.
Resources are seen as scarce, or, insufficient to satisfy true productions, all of the goods and services, that
To allocate these available resources, we dictate price, because price determine the positive or negative
choices of purchase.
Economics is the study of mankind in the ordinary business of life
Economic arises out of the scare resources to satisfy human wants.
*Economics is the study of the ways that humans organize themselves to make the
necessary choices about how scare resources are used to produce goods and services,
necessary to satisfy human needs and wants.
Two Big Economic Questions
Two big questions summarize the scope of economics:
How do choices end up determining what, how, and for whom goods and services get produced?
When do choices made in the pursuit of self-interest also promote the social interest?
Goods and services are the objects that people value and produce to satisfy human wants