chapter+1

chapter 1.1 Notes Questions 1-10
 * economics- the study of how people seek to satisfy their needs and wants by making choices
 * a need is something people cannot live without and a want is something not essential to survival
 * scarcity- limited quantities of resources to meet unlimited wants
 * all goods produced are scarce, no one can have an endless supply of everything
 * a shortage is when producers cannot or will not produce enough to meet the demands
 * factors of production- land, labor, and capital
 * land is the natural resources that are used to make goods and services
 * labor is the effort in which a person devotes a task to
 * capital is any human made resource that is used to produce other goods and services
 * physical capital- all human made goods that are used to produce other goods and services, tools and buildings
 * human capital- the skills and knowledge gained by a worker through education and experience
 * entrepreneurs- ambitious leader who combines land, labor and capital to create and market new goods and services
 * 1) A good is a physical object such as clothes where as a service are actions or activities that one person performs for another.
 * 2) The idea of scarcity is good for economics because it puts people in the position to only use what they have.
 * 3) Scarcity is when a small amount of things are produced on purpose and a shortage is when a good or service is unavaliable.
 * 4) The three factors of production are land, labor, and capital that all leads to an entrepreneur and eventually goods and services.
 * 5) physical capital has the advantage of being made by humans for humans.
 * 6) Entrepreneurs are leaders in the economy that help create new markets and expand exsisting ones.
 * 7) They might look at it as an example of scarcity because because no matter how many cars are made there will always be a demand for them.
 * 8) a) Capital b) Labor c) Land d) Land e) Entrepreneur f) Entrepreneur
 * 9) First you would need a building to start, then a work force, and finally people to pay you.
 * 10) I agree with that.

Chapter 1.2 Notes Questions 1-6 8,9
 * a trade off is an alternative that we sacrifice when we make a decision
 * there are multiple types of trade offs including individual, businesses and society
 * guns or butter is when a country decides to produce more or less military or consumer goods
 * opportunity cost- is the most desirable alternative given uo as the resalt of a decision. cant use the same money more than once
 * can use a decision making grid to help you choose what you would like to spend your money on
 * thinking at the margin is deciding whether to do or use one additional unit of some resource
 * you need to take into account every option there is when spending a lot of money
 * 1) Three examples of trade offs are individual, business and society.
 * 2) The decision must always be desirable because if not the person using the money would not be able to survive very long.
 * 3) Guns or butter is the difference between making military and consumer goods.
 * 4) Thinking at the margin means using multiple resources to acomplish one thing.
 * 5) In reality i dont think that trip would be worth itjust because of how much money you would already be paying for the car. maybe it would make more sense if the price was only a 100 bucks to start with.
 * 6) a) waste of money b) something else you can be doing? c) better because no work or school d) an uyou be ing anything else
 * 7) blank
 * 8) 2 hours would mean less work done and 6 hours means no time for anything else. I think 4 hours is the best option.
 * 9) Would the worker be a benefit or not? Do tey have any skills that they can bring and is it a good move for your company at the time.

Chapter 1.3 Notes Questions 1-6
 * production possibilites currve is a graph that shows alternative ways to use an economys resources
 * production possibilities frontier- the line on a production graph that shows the maximum possible output
 * efficiency- using resources in such a way as to maximize the production of goods and services
 * underutilization- using fewer resources than an economy is capable of using
 * cost-to an economist, the alternative that is given up because of a decision
 * law of increasing cost- law that states that as we shift factors of production from making one good or service to another, the cost of producing the second item increases
 * 1) Underutilization will be shown on the graph as something that is bringing production way down and not helping.
 * 2) The graph is able to show how an efficient economy is running.
 * 3) It is able to help show what steps must be taken in order to increase the amount of money coming into a company.
 * 4) Even though the amount of farms has decreased the production has increased due to more efficient ways of running things.
 * 5) a) adds a lot of money through sales b) all production will decrease and the whole country will be effected c) everything gets effected
 * 6) a) production would go down b)all production moves up

Chapter 1 review 1-7 9-16
 * 1) scarcity
 * 2) trade offs
 * 3) land
 * 4) guns or butter
 * 5) opportunity cost
 * 6) entrepreneur
 * 7) underutilization

9. All goods and services are scarce because nothing is unlimited, for example land and be destroyed, people can get hurt, and human made resources can fail. 10. a) The president would like the scarcity and would need to be careful with trade offs b) a leader in a developing country would need to be aware of scarcity and trade offs in order to run their country properly c) would not care so much about scarcity and would have a large interest in trade offs so they wont loose money d) a citizen in the bottom 5% would not really have an effect in either because of how little money they have 11. you can learn about efficiency, growth and cost 12. this law states that as production switches from one item to another more and more resources are nessary to increase production for the second item 13. the first railroads made it so other goods could get from place to place faster and safer. 14. the government provides land, labor, and capital. Land refers to natural goods and resources. Labor is the work people do and capital is any human made resource. 15. i agree that entrepreneurship is a special category of labor because it is a working job that gets money. 16. in the last 24 hours i decided to buy a soda, not get gas, and drive more than i needed to to. i bought the drink because i was thirsty and it wasnt to expensive. when i chose to not get gas i was able to put off spending money but now i will have to spend more because of it. since i drove more than usual now it will cost me money before i would usually need to spend it.